Deezer avoids stock market disaster and goes abroad

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A spectacular rebound, since the end of July, has enabled him to avoid the worst. Now the streaming platform can resume its roadmap.

Deezer avoids disaster on the stock market and goes abroad

In an interview with Reuters, the CEO of Deezer announced that he was preparing his German conquest, at the time where the company finds interest on the stock market. To take advantage of this last chance, Deezer has reviewed its strategy and is attempting international deployment. Germany therefore joins Brazil, the only country that the platform had decided to invest in since its inception in 2007.

Until then, Deezer capitalized on an offer in partnership with operators of all kinds. More than half of its users were French and the platform never managed to exceed 10 million subscribers and since its birth, Deezer has never been profitable. In recent years, its capitalization has melted, as with the entry into the capital in 2020 of the Mexican television group Azteca (Deezer fell by 23%).

On the stock market, its share price lost up to 50% in the first days of trading, to further reduce the capitalization of the company. Deezer wasn't even a unicorn anymore in early July (a $1 billion+ company). That is to say… But the trend was reversed at the end of the month. Deezer is currently enjoying a 25% rebound to EUR 4.64 (August 5).

Deezer avoids the stock-market disaster and goes abroad

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First engine of growth

“I think that we have succeeded in reproducing in Brazil the model that we have applied successfully in France, that is to say that we are entering the market with major strategic partners”, explained Jeronimo Folgueira, the new boss of Deezer for a year. These strategic partnerships, as he calls them, relate to contracts with operators such as Orange to integrate Deezer into their additional packages.

For Germany, the CEO of Deezer has already announced that the partnership will be signed with RTL Group. Significant of the absolute calm in the evolution of Deezer in France, the arrival in Germany will form “the growth engine of the company over the next few years”. The IPO was therefore part of the plans to prepare for this deployment. By going public, Deezer raised 143 million euros. Surely the last envelope of fresh money to invest and hope to obtain results.

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