Tesco is putting its Blinkbox video streaming business up for sale as the company seeks to concentrate on its core supermarket operations.
The retailer is understood to be examining a number of options, including closure, if a buyer cannot be found.
Blinkbox, established by former Channel 4 New Media executive Michael Cormish and Vodafone’s former head of content Adrian Letts, was acquired by former Tesco chief Philip Clarke in April 2011. His successor Dave Lewis is struggling to fend off competition from discounters Lidl and Aldi.
Senior Blinkbox staff were told at a meeting in Clerkenwell on Friday.
In August, Tesco quietly announced it would be closing its Clubcard TV service on October 28.
Launched in March 2013 the service was available free to holders of its loyalty card.