Deezer, Spotify and Apple Music’s rival music streaming service, is reportedly making another attempt at an IPO.
The last attempt by Paris-based Deezer to list on the stock exchange failed in 2015.
The company launched an IPO attempt on the Paris Stock Exchange in October of the same year, but stalled the process just three days before the deadline, citing difficult “market conditions”.
The market situation is different today: According to updated IFPI figures, the worldwide recorded music industry generated sales in 2015 $14.7 billion annually, of which only $2.8 billion (19%) came from streaming. In 2021, the global recorded music industry generated $25.9 billion annually, of it $16.9 billion (65%) came from streaming.
Deezer’s IPO in 2022 may represent an opportunity for the French platform to capitalize on the explosive growth of the global music streaming market over the past decade.
One person who may be particularly interested in realizing this value is Len Blavatnikthe founder of Access Industries.
Access, the majority owner of Warner Music Group, increased its stake in Deezer in 2016 to take a controlling stake in the music streaming company.
Today’s financial data from France indicates that Len Blavatnik as the beneficial owner personally a 28.95% Participation in Deezer.
Other modern shareholders of Deezer are the telecommunications company Orange and Kingdom Holding Company from Saudi Arabia.
Corresponding Wall Street Journal According to sources, Deezer is currently nearing a deal to go public via a merger with a Special Purpose Acquisition Company (SPAC).
Who is this SPAC? You will surely be familiar MBW Reader.
Last summer we told you about a new SPAC based in Paris – I2PO – which had around $325 million in capital and was backed by the holding company of the billionaire Pinault family.
“The value of music as we’ve seen it in recent years has grown, the way to me is only up.”
Iris Knobloch, I2PO, spoke last year
MBW announced at the time that I2PO – billed as “the first European SPAC for the entertainment and leisure sector” – had a particular interest in considering a merger with a music industry company.
Iris Knobloch, Chairman and Chief Executive Officer of I2PO, told MBW: “The value of music as we have seen it grow in recent years, the way to me is only up.”
I2PO went to Paris Euronext on July 20 last year.
That WSJ now reports that Deezer and I2PO are getting closer to an agreement that would take Deezer public if an agreement is reached and could be announced in the coming days.
That WSJ not trying to rate Deezer, but here is a little story on the subject:
- When Deezer rejected the Paris IPO offer in 2015, documents indicated that Deezer was trying to raise around $400 million;
- In 2018, Deezer privately raised $185 million from existing investors (including Orange and Access) and Kingdom Holding Company. That raise, Deezer said, gave it a valuation of €1 billion (about $1.1 billion in today’s money);
- In 2020, Deezer struck a deal with TV Azteca/Grupo Salinas in Mexico, which the music streamer said valued its company at €1.3 billion (about $1.4 billion).
Deezer claims to have 16 million monthly active users worldwide.
Recent data from Midia Research indicated that Deezer a 2% Share of all global music streaming subscribers at the end of June last year. That put Deezer’s paying audience at around 10.5 million subs.
In May last year, Deezer hired Jeronimo Folgueira as its new CEO. He succeeds Hans-Holger Albrecht, who has led Deezer since 2015.
Before joining Deezer, Folgueira was CEO of online dating company Spark Networks, which is traded on NASDAQ.
In January this year, Deezer announced that it had hired former Orange executive Stephane Rougeot as chief financial officer and deputy CEO.
Like Folgueira, Rougeot brought public company leadership experience to Deezer.
Seven years ago last month, then-CEO of then-independent label Ministry Of Sound, Lohan Presencer memorably blew up a senior Deezer rep – along with an executive from fellow streamer Rdio – live on stage at Mobile World Congress in Barcelona blown up.
Presencer said, “You are very nice people and I’m sure you work very hard… [but] You promote the rhetoric of supporting the music industry when in fact you work for companies funded by investors who want to see an exit from that investment. So your goal is to grow your user base to tell a story in a way that you can go public or sell.”
Presencer added, “They’re not the ones investing in talent development. They’re not the ones who sign artists.
“Our artists, our investment, our creative community is shrinking daily because of the free services that are giving away music out there with the ultimate goal of being relegated to it.”music business worldwide
https://www.musicbusinessworldwide.com/seven-years-after-its-ipo-collapsed-deezer-is-planning-to-go-public-again-via-a-spac/ Seven years after the failure of the IPO, Deezer is in talks about going public again – via a SPAC