Deezer Raises $130 Million Round Led By Warner Music Owner Access Industries
(UPDATED) Deezer, the French based digital music service that promised to expand to 200 countries this year, but avoiding the U.S., has reportedly raised $130 million. Leading this fourth funding round is Warner Music Group’s owner Access Industries and previous investor Idinvest. $36 million will be used to buy out previous shares including mobile provider Orange who had previously had an 11% stake in Deezer.
It's a mjor shift for Deezer from cozying up to telecoms like Orange to having major label partners, pointed out Le Figaro, the leading French newspaper that first reported the deal.
The other major labels already own a piece of Spotify; and the Deezer deal may be about internationally- minded Access Industries wanting their own piece of the digital music pie. The hope may even be to eventually bring Deezer into the US.
But given the complex and expensive nature of label/music streamer relationships, any Warner ties could also prove to be obstacles, as the other two larger majors, Sony and UMG-EMI, seek to exert their dominance into any negotiaition.