DEAG CEO on the firm’s rapid expansion in Europe
Deutsche Entertainment (DEAG) CEO Detlef Kornett has spoken to IQ about the firm’s latest acquisition and how it fits into a wider expansion strategy.
Today, the Berlin-based live entertainment giant announced its first foray in Italy with the acquisition of Milan-based rock promoter MC² Live.
MC² Live was launched after the company’s founders, Andrea and Stefano Pieroni, sold a 51% stake in their former business, Vertigo, to CTS Eventim in 2017.
DEAG says the brothers will continue to manage MC² Live in the long term together with their team, who will all remain with the company.
Speaking about his admiration for the company’s leader, Kornett told IQ: “Andrea has been in the industry for decades and has a very impressive roster of artists and bands that he works with internationally, as well as Italian-language acts.”
“We have had a very impressive growth curve and I believe this acquisition will help us to continue on that path”
Over the past few decades, the stalwart promoter has organised numerous concerts, festivals and events with stars such as Judas Priest, Slipknot, Rammstein, 50 Cent, Ne-Yo, Eros Ramazzotti and Negrita.
“MC² are of a certain size already so this is a very important step for DEAG where we can really funnel growth, and that’s what DEAG has been all about these years,” says Kornett. “We have had a very impressive growth curve and I believe this acquisition will help us to continue on that path.”
Indeed, DEAG has been on an acquisition spree in the past 12 months, entering the Spanish market in late 2023 with the launch of subsidiary Get Rock Live (GRL) and acquiring three companies in the first six months of 2024. With the acquisition of MC² Live, DEAG is now present in Germany, the UK, Switzerland, Ireland, Denmark, Spain and Italy.
“Benelux, The Netherlands is an obvious gap in our marketplace, and at the same time it’s not an easy market – it’s set in a certain way – so the right opportunity would need to arise for us to expand there,” explains Kornett. “That doesn’t mean that we’re not in conversations, it is just not right yet.”
Though the company is bullish in its international expansion, Kornett insists that being a pan-European company is not the main goal.
“Obviously, there are still so many white spots for DEAG on the European map and we will continue to explore those opportunities”
“Obviously, there are still so many white spots for DEAG on the European map and we will continue to explore those opportunities but the partnership has to fit,” he explains.
“The importance is really on the people, the way they conduct business and relationships, and the fit. The way Andrea maintains his relationships, the way he budgets for his events, the way he settles his events fits very well with us.”
Kornett says he’s excited to capitalise on the opportunities available in the Italian live music market alongside MC².
“There’s a huge opportunity for international rock and pop in the market and the Italian language music sector is very important and very big, but it’s also very divided between some major players,” he says.
“There are only very few independents left but now Andrea has a strong partner to continue to be independent in that market. Italy is no different to the UK or Germany, there are opportunities for independent, boutique-type promoters like us, and we intend to take full advantage of that.”
DEAG has set its sights on becoming “a company with more than €500 million in revenues”
The company has already shared ambitions to take some of its pre-existing event brands to the Italian market and introduce some new ones.
“MC² and Andrea have traditionally been focused on Italian artists and international rock and pop,” he says, nodding to the firm’s upcoming shows with Iron Maiden, Pantera, Skunk Anansie and Falling in Reverse.
“I think there are elements within rock that we can add but we would look for synergies the other way. We do all kinds of events in the non-music sector from the spoken word events to the light trails to the family shows to the classical music to jazz. – so we will explore all of these opportunities. Is the market ready for it? Does it work? If it works, then let’s give it a shot!”
While DEAG continues to expand in Europe, the firm has set its sights on becoming “a company with more than €500 million in revenues”. Its highest-ever revenue was €325 million in 2022.
“We will go some way towards that goal in 2025 but it’s more of a three-year plan,” says Kornett. “It’s all in the bottom line, so we have to find the right balance in our portfolio in order to achieve that. We’ve been at 8–9% margin – another thing we hope to grow next year. This year nothing was easy but I generally feel that the business will be in a better flow in 2025.”
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