Vodafone rumoured to be in talks to buy Tesco's Blinkbox

Vodafone is reportedly in talks with Tesco to buy Blinkbox, the supermarket's video-on-demand rival to Netflix and Amazon Prime.

Blinkbox: set for Vodafone sale
Blinkbox: set for Vodafone sale

According to multiple reports, the operator is in advanced talks with Tesco, but the two have yet to come to any agreement.

Vodafone recently announced plans to move into the home broadband and TV market, taking on Sky, BT and Virgin in spring 2015.

The operator didn’t say how it plans to launch a pay TV service in the UK, so the acquisition of Blinkbox could make sense to bolster out its content and infrastructure.

Vodafone already has content deals with Sky in place, but is reportedly looking to partner with a set-top box provider, rather than produce its own.

Blinkbox offers a subscription streaming service for film, TV and music, operating much like Netflix or Amazon Prime, on TV, mobile or PC.

The sale of Blinkbox has been rumoured since October, as crisis-ridden Tesco looks to axe "non-core" businesses. If the retailer doesn’t manage to sell the business, it is possible Blinkbox could close.

According to its most recent accounts, which cover up until February 2013, Bliknbox posted a pre-tax loss of £4.6m, up from £5.7m in 2012.

Vodafone said it would not comment on "speculation", while Blinkbox has not returned a request for comment.

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