Entertainment retailer HMV has acquired a 50 per cent stake in 7digital, a media company, for £7.7 million in cash.

Entertainment retailer HMV has acquired a 50 per cent stake in 7digital, a media company, for £7.7 million in cash.

London-based 7digital has a catalogue of over six million digital music tracks and will become the single supplier for all HMV’s digital operations. The privately held company will also provide a new e-books store.
Simon Fox, chief executive of HMV, said: ‘We believe 7digital is the best partner to help us accelerate our growth in digital entertainment and to become a major player in the market for legally downloaded entertainment.’

In the year to April 2009, HMV reported a 4.4 per cent increase in sales to £1.9 billion, while pre-tax profits were up 11.5 per cent to £63 million.