Tesco buy We7 and defecates on any cool it once had
Supermarket behemoth Tesco has only gone and bought We7 (the indie version of Spotify) for £10.8m. Peter Gabriel, the face of We7 is now an even more disgustingly wealthy man and now, a bona-fide sell-out. Congrats.
Tesco now have a 91% stake in the music company, with the rest of the shares to be purchased within weeks.
Peter Gabriel We7 business partner, Steve Purdham, said the deal was a "great outcome" for the company. The retail giant now adds the digital jukebox to its portfolio along with movie rental firm Blinkbox.
Interestingly, Tesco's latest acquisition has never turned a profit, but according to Purdham recently, We7 tripled its turnover and reduced losses to just under £3m. Purdham told the Guardian: "Initially it's business as usual but given what they've got there's great opportunities; the real one is access to their wealth of consumers and marketing."
Mark George, the digital director at Tesco, said in a statement: "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."