The popular music sharing website WE7 has been bought by the equally popular supermarket company Tesco for £10.8million as the retail giant tries to move further into home entertainment. The supermarket company has taken a 91% stake in London - based WE7with the remaining shares to be purchased within weeks. Genesis frontman Peter Gabriel is expected to make a £2m from this deal.
WE7 boasts a catalogue of 11m music tracks and is available on iPad, iPhone and Android apps and on the web. The website and app service has never made a profit but in 2010 the company We7 tripled its annual turnover in 2010 and reduced losses to just under £3m.
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."
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