Digital music provider and radio programme maker 7digital yesterday confirmed it had finalised its deal to acquire 24-7 Entertainment – another B2B provider of digital music services – from German consumer electronics giant MediaMarktSaturn, which took a controlling stake in 24-7 back in 2009.
The deal also sees MMS become both the biggest shareholder in the publicly-listed 7digital and also one of its largest clients, with new and renewed deals worth in total £17 million also being signed off. Among the various services 7digital will provide to MMS, it will power the German firm’s streaming platform Juke.
Confirming all this, 7digital boss Simon Cole said: “We set out three years ago to create a profitable, globally dominant player in what we believed would be a rapidly expanding market for the technology and content needed to build streaming music services. This transaction represents the culmination of that strategy, completing our consolidation of European competitors – following the Snowite acquisition last year – and transforming 7digital in terms of size, scale and profitability”.
Meanwhile MediaMarktSaturn’s Wolfgang Kirsch added: “As the number one music retailer in Europe, music streaming is increasingly important for us. Being a shareholder of 7digital will enable us to strengthen our digital entertainment service Juke! and develop further business models for the growing music streaming business”.[from http://ift.tt/2lvivLP]