UK-based supermarket giant Tesco has announced that it has acquired music streaming service We7 for £10.8m ($16.75m).
The retailer says that it will “offer customers a wider choice in how they consume music and complement Tesco’s current music offer in store and online.” The move broadens its online content offerings. It also recently acquired Blinkbox, a video streaming service.
Tesco has acquired a 91% stake in We7 as of today and says it will purchase the remaining shares within a period of weeks.
Founded in the UK in 2007 with backing from former Genesis frontman Peter Gabriel, and fully launched as a music streaming service in late 2008, We7 has shifted its business model a few times in its lifetime, most recently offering a radio format similar to Pandora but with the option to get breaking news alerts and other radio-style features.
The 💜 of EU tech
The latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!
Despite expanding into Belgium and Ireland last year, We7 was blighted by reports of huge financial losses. Now as a part of Tesco, the service will take on Spotify and the other players in a competitive market with the support of a highly successful multinational retailer.
Image credit: LoopZilla
Get the TNW newsletter
Get the most important tech news in your inbox each week.