UK based MNO Vodafone is considering buying the Tesco-owned video and music streaming service blinkbox to give it access to content as it gears up to become a quad-play operator.

Reports emerged in early October that the UK supermarket retailer was planning to sell off or shut down the loss-making operation, which has struggled to compete against services such as Netflix and Sky’s NOW TV OTT operation.

Tesco acquired an 80 per cent stake in blinkbox in April 2011, with the intention of using it to bolster sales of its digital entertainment offering.

Tesco is currently the subject of an investigation by the UK’s Financial Conduct Authority following the retailer’s overstatement by £250,000,000 of expected profit for the half year.

The DailyTelegraph reports that Tesco is in detailed talks with Vodafone and that other parties have withdrawn from the bidding.

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