The Deezer geezers have raised some more cash, which is good. If there’s one thing streaming services need, it’s more cash. The new finance round has raised 160 million euros and involves the digital outfit’s existing shareholders – including Warner Music owner Access Industries – plus Saudi Arabia-based investment firm Kingdom Holding and Dubai-based media company Rotana Group.
Both of those companies are headed up by Al-Waleed bin Talal, a member of the Saudi royal family who was caught up and for a time detained in a government crackdown on corruption in the country. This is his first big deal since reaching a “confirmed understanding” with Saudi authorities in January which, according to Bloomberg, he said left him free to function normally with “zero guilt” and “zero conditions”.
The deal also sees Deezer ally with Rotona on content, with the former signing a deal to distribute the latter’s digital output in the Middle East and North Africa region.
Confirming the new deals, which give Deezer a one billion euro valuation, the streaming firm’s boss Hans-Holger Albrecht said: “I would like to welcome our new shareholders KHC and Rotana to Deezer, and I’m excited to work with them to take Deezer to the next level”.
He went on: “The new funding enables us both to accelerate our expansion in fast growing international music markets and strengthen our positions in key territories. The exclusive long-term distribution agreement also provides us with a unique opportunity to build future market leader positions in exciting markets”.
Deezer, of course, is a relatively small player in an increasingly competitive market where, although the market at large is booming, most services are loss-making. The company has continued to rise private finance ever since it abandoned an IPO in 2015.
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