The world's third largest retailer, UK based Tesco has purchased a 91% stake in customized online radio service WE7 for $17 million USD. The acquisition follows Tesco's 2011 purchase of online movie service blinkbox. Tesco has said it will continue to acquire companies that give it a foothold in the digital entertainment market.
Founded in 2008 with funding from musician Pater Gabriel and others, We7 became an ad-supported music streaming service and download store. Steve Purdham has serves as CEO since the company's inception.
We7 has claimed 1 million UK users, but growth appears to have slowed since Spotify and others moved aggressively into the UK.
MORE: An interview with We7 CEO Steve Purdham
