British broadband provider TalkTalk (TALK.L) is in negotiations to buy grocer Tesco's (TSCO.L) loss-making video-streaming service Blinkbox to bolster its TV business, the Financial Times said on Monday.
Blinkbox, acquired by the supermarket chain in 2011 to provide Netflix-type movie, TV and music streaming, had been earmarked for sale or closure by Tesco Chief Executive Dave Lewis, a source familiar with the matter said in October.
Analysts expect Lewis to announce the disposal of non-core assets on Jan. 8, when he is due to outline his strategy for reviving the fortunes of Britain's biggest grocer.
Vodafone (VOD.L) had also looked at Blinkbox, which analysts say could be worth about 14 million pounds ($22 million), according to previous reports.
TalkTalk and Tesco declined to comment.
