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TalkTalk has emerged as a potential bidder for Tesco's content streaming service Blinkbox.

The grocery giant is eager to sell the video-on-demand business as it looks to shore up its balance sheet in the wake of a difficult year, reports the Financial Times.

Blinkbox was set up by former Channel 4 and Vodafone executives in 2006, with a view to challenging the likes of Netflix and Amazon.

The company has built up the Blinkbox brand through a series of acquisitions, and now offers films, TV programmes, music and ebooks online.

However, Blinkbox has struggled to deliver a profit for Tesco and is seen as expendable to the group.

With the UK telecoms market entering a period of consolidation, with a number of mergers and acquisitions on the cards, TalkTalk may look to take the streaming service off the supermarket group's hands.

TalkTalk already offers quad-play broadband deals - including internet, landline, mobile and TV services - and provides access to premium content via its YouView set-top box.

A deal for Blinkbox would increase the range of options available to TalkTalk TV viewers, and potentially add to the appeal of the firm's TV and broadband bundles.

The price for the streaming provider would reflect the losses it has made under Tesco's ownership, making a deal all the more likely.

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