Tesco to sell its streaming service to Guvera?

Guvera, the streaming service that launched its beta version on the Gold Coast in 2010, is allegedly gearing to buy Tesco’s streaming service Blinkbox Music.

The British supermarket giant is reportedly in talks with Guvera over a purchase price that’s believed to be well below the £12m that Tesco paid to acquire it in 2012. Although neither Tesco or Guvera have revealed any information on the buy, Financial Times has reported Blinkboxwill be sold for less than £5m.

TMN reached out to Guvera who sent us the following statement:

"Guvera does not comment on market rumour or speculation.As part of our international expansion plans we regularly assess potential partnerships and acquisitions that will strengthen our brand.Guvera is a fast growth company that is constantly seeking opportunities to further that growth."

The placement of Blinkbox with Guvera comes after Tesco’s active moves to compete in the supermarket price war. Last week its chief customer officer, Jill Easterbrook announced it had lowered the prices of 380 of its best-known products.

Blinkbox Music (formerly We7)operates using both freemium and paid subscription models for users in the UK and Ireland and has deals in place with all three majors. It also boasts over one million active users, making it a competitive service in Europe’s streaming market.

Since Guvera’s Australian launch, it has expanded to territories including Singapore, Malaysia, Hong Kong, The Philippines, Indonesia, Venezuela, India (in a deal with 7Digital), and most recently Russia and Ukraine. In just over a year Guvera has launched across 16 countries and five continents; however until now, it hasn’t hinted at an expansion across Europe.

In each of the markets, Guvera offers a library of 12 million local and international tracks, and has integrated its ad-funded model with branded channels where advertisers can target relevant audiences.