Deezer is a web based streaming music service, similar to Spotify & Pandora. Based in Paris, France they launched in 2006 and have slowly expanded out throughout Europe and the Middle East. They currently have 5 million paid users with 30 million licensed tracks and 30,000 radio channels. This compares quite well to Spotify’s 7 million paid users. In the past Deezer has made deal with telecoms and more recently partnerships with LG, Samsung, and Toshiba.
Seeing success with its mobile phone applications, Deezer is looking to expand into the United States. France’s Startup Blog reports:
In order to launch [ in the US], Deezer will likely need to partner with a strong local player, which may explain the rumors around the Microsoft acquisition. A partnership with Xbox or Windows could provide Deezer with some much needed advantage over rival Spotify, whose deep integration with Facebook and early attack of the US market has given them the lion’s share of the mind share.
The is the second such rumor of Microsoft acquiring music software. The first regarding Winamp & Shoutcast http://mspoweruser.com/rumor-microsoft-looking-to-buy-shoutcast-winamp-from-aol/