Tesco buys WE7 for £10.8 million
15 June 2012 | by The Retail Bulletin
Supermarket giant Tesco has edged further into the home entertainment market this week with the acquisition of digital music platform WE7.Tesco has bought a 91% stake in the business and said it will purchase the remaining shares within a period of weeks. The purchase price was £10.8 million.
The move follows the supermarket’s purchase of online movie service Blinkbox last year and is the latest step in its move into the digital entertainment market.
Mark George, digital director at Tesco, said: "Customers and technology together are transforming the way we listen to music. Tesco is already one of the UK’s largest retailers of CDs; this move will help us offer a greater choice for the growing number of customers who want to access music instantly on any device, whenever and wherever they want. WE7 has a great team and a good technology platform from which we can launch a range of digital music services in the future."
Steve Purdham, CEO of WE7 added: "We are very excited by the prospect of teaming up with Tesco. With its loyal customer base, numerous marketing channels and international reach, we believe Tesco is the perfect partner to bring WE7’s music services to a wider audience. Tesco has been an innovator in entertainment retailing for many years and we look forward to continuing this innovation digitally."
Tesco's news comes just days after Sainsbury's announced it is to acquire the e-book platform Anobii.
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