September 7, 2012, 4:34 PM

Tesco buys a digital books company

The deal for Mobcast gives Tesco a presence in digital books, music and video.

Lead Photo

As a mass merchandise retailer online and off, Tesco PLC likes to keep its corporate finger in a lot of pies, including digital book sales.

Tesco, No. 3 in the 2012 Internet Retailer Top 400 Europe, has acquired Mobcast, an electronic book platform provider, for an undisclosed amount. Mobcast, which develops and markets technology to download a library of more than 130,000 digital book titles to a wide variety of computers and mobile devices, was acquired by Tesco in order to diversify Tesco’s electronic entertainment business, says digital entertainment CEO Michael Comish.

The acquisition of Mobcast is Tesco’s second purchase in recent months. In June Tesco, one of the biggest mass merchants in the United Kingdom and Europe, acquired WE7, a U.K. Internet radio service with a library of more than 11 million tracks. Tesco acquired WE7 in a deal valued at about $417.2 million. “We want our customers to have the widest choice in digital entertainment,” says Comish. “We are already one of the U.K.’s largest booksellers and Mobcast will help us offer even more choice for the large and growing number of customers who want to buy and enjoy books on their digital devices whenever and wherever they want.”

Tesco has been purchasing other digital entertainment companies and technology to enhance a new digital entertainment strategy that now includes books, movies and music. In December and for an unknown sum, Tesco acquired 80% of Blinkbox, a U.K. movie streaming service with a library of more than 9,000 movies and TV shows and a base of more than 2 million visitors per month. Blinkbox offers paid and some free downloadable content.

comments powered by Disqus




From IR Blogs


Tony DiCostanzo / B2B E-Commerce

B2B e-commerce in a B2C world

Companies that sell online to other companies can learn a lot from looking at the ...


Vebeka Guess / E-Commerce

Three online shopping trends to note this holiday season

Lessons from the 2013 holiday season point the way for effective marketing tactics in the ...