Multi-year investment deal worth US$40 million values Deezer at €1.3 billion, (US$1.4 billion) – a 30% premium from last funding round in 2018
Deezer will grow rapidly in Mexico through partnerships with TV Azteca and other companies of Grupo Salinas
Deezer is also acquiring the social app Mugo and will be the first audio streaming platform with its own music show, Deezer Live
Mexico City, Mexico. July 1st, 2020. Deezer and TV Azteca are shaking up audio streaming in Mexico with an alliance to bring Mexicans all the music and podcasts they love. The exclusive partnership will accelerate Deezer’s growth in Mexico as TV Azteca and companies of Grupo Salinas promote Deezer across their businesses and services.
Mexico’s music streaming market is expected to more than double and exceed US$700 million between 2019 and 2024. Deezer already has a growing user base in Latin American countries including Mexico, Colombia and Argentina. Deezer is also the second largest streaming service in Brazil. The partnership with Grupo Salinas´ companies will enable Deezer to become a key audio streaming player in Mexico and accelerate its growth in the region.
Music fans in Mexico will discover Deezer through creative campaigns on TV Azteca, demonstrating that Deezer is the one tap music experience that effortlessly delivers the music for the moment. Today, users can sign up for the music streaming service directly in Totalplay. Deezer will also partner with Grupo Elektra to offer Mexican audio consumers digital music to complement their purchases throughout the extensive storefront network across the country.
Spanish speaking listeners can look forward to a wide range of original content from Latin artists. They will be also able to enjoy a growing number of expertly curated and locally relevant playlists. Deezer also recently launched podcasts in Mexico, helping listeners enjoy a large number of audio shows and stories.
“Mexico is one of the fastest growing music markets in the world. We are excited to bring Grupo Salinas on board as a strategic partner and welcome them as a new investor in Deezer. We see huge growth potential in countries like Mexico, Colombia and Argentina and are investing in marketing and subscriber growth. Our experience and number two position in Brazil will help us become the main challenger in the region,” commented Hans-Holger Albrecht, CEO of Deezer.
“We already have the team in place to make sure that Mexican music fans find the content they love. Thanks to TV Azteca we will have an unprecedented reach in Mexico, which means we can make even more content for Mexican music fans. We are also excited to start implementing our proven retail strategy by working closely with Grupo Elektra’s stores across the nation,” he added.
“We are pleased to form this alliance with a world-class company like Deezer. This will be one of the most innovative and disruptive partnerships in the market. It is an exciting time to be proactive and to participate in the fast-growing music streaming industry while we connect music fans in Mexico. We believe this partnership will collaborate with their expansion strategies in the region while strengthening TV Azteca´s content offer,” commented Moshe Arel, Director of Innovation of Grupo Salinas and CEO of Azteca Play in TV Azteca.
As part of the deal, the company will take over the popular television show Mugo Live and will rename it ‘Deezer Live’. The show will continue to air weekly on the national channel Azteca Uno, where it generates two million viewers per episode. Deezer will focus on introducing new and emerging local talent, with regular live performances from Mexican artists. Deezer is also acquiring the social app Mugo, founded by Ori Segal, Shay Goldberg and Roman Slutsky.
“Four years ago, we jumped into the red stormy waters of the music industry. Our goal was to make music social on mobile. It was an amazing and passionate journey. We are proud to be the glue that connects our strategic partners, TV Azteca and Grupo Salinas, with Deezer, making this dream a reality,” commented Ori Segal, Co-Founder and CEO of Mugo.
The total expected investment of US$40 million will take place over a multi-year period. The total investment values Deezer at €1.3 billion (US$1.4 billion), which represents a 30% increase in the company’s value from the successful funding round in 2018.
Jones Day acted as the legal adviser of Deezer.
Mexican music fans can sign up for Deezerhere. Expect to see more of Deezer on TV, in your shops and in marketing campaigns by the end of July 2020.
Notes to editors:
*Mugo fans will be able to use the social music app Mugo until the end of June 2020 before the app shuts down. Existing users will have the option to sign up for a free three-month Deezer Premium offer.
Deezer connects 16 million monthly active users around the world to 56 million tracks. Available in over 180 countries worldwide, Deezer gives instant access to one of the largest and most diverse global music streaming catalogs. Deezer is the only music streaming service with Flow, the unique mix of all your old favorites and new recommendations in one ever-changing stream. Based on an intuitive, proprietary algorithm and created by people who love music, it’s the only place to hear all your music back-to-back with fresh discoveries tailored to you.
Deezer is a privately held company, headquartered in Paris with offices in São Paulo, Berlin, London, Miami, Dubai and around the world. Deezer is available as a free download for iPhone, iPad, Android and Windows devices or on the web at deezer.com. For the latest news on Deezer go toDeezer.com/company/press
ABOUT TV AZTECA
TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating four television networks in Mexico: Azteca Uno, Azteca 7, adn40 and a+, through more than 300 owned and operated stations across the country. The company also operates TV Azteca Digital, the operator of several Mexico’s most visited websites and social media platforms.
TV Azteca is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast growing, and technologically advanced companies focused on creating economic value through market innovation and goods and services that improve standards of living; social value, to create social capabilities to improve communities; and environmental value, by reducing the negative impact of business activities. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. These companies include TV Azteca, Grupo Elektra, Banco Azteca, Purpose Financial, Afore Azteca, Seguros Azteca, Punto Casa de Bolsa, Totalplay and Totalplay Empresarial. TV Azteca and Grupo Elektra trade on the Mexican Stock Exchange. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. The group of companies share a common vision, values and strategies for achieving rapid growth, superior results and world-class performance.