Music streaming service Deezer: IPO with Minister

Vseven years ago, the planned IPO was called off with reference to a difficult market environment, now it is deezer the jump onto the parquet succeeded. Even the French Minister of Finance and Economy, Bruno Le Maire, was present for the obligatory ringing of the bell. However, the first day of trading on the Paris Euronext was initially modest. At the start, the share was quoted at EUR 8.50, by midday it was around EUR 6.60 – a drop of a good 22 percent. At times, the price had even collapsed by around 30 percent.

The French service, founded in 2007, is number five among the global music streaming providers – behind the services of the US corporations, Apple, Amazon, YouTube and market leader Spotify. With currently 9.6 million subscribers, Deezer is far removed from the four competitors. Apple, Amazon and Google only publish figures sporadically, but all have more than 50 million paying users. Spotify, listed on the stock exchange like Deezer, has 182 million subscribers as of the end of the first quarter of this year.

One billion euros in sales in 2025?

Deezer has that initial public offering organized via a merger with the special purpose vehicle I2PO. This is a so-called Special Purpose Acquisition Company (SPAC), backed by prominent players from the banking and media sectors. These include the French billionaire François-Henri Pinault, head of the luxury goods group Kering, known for brands such as Gucci and Bottega Veneta, or the German Iris Knobloch, former manager of the American media group Warner Media and recently president of the Cannes Film Festival. The largest Deezer shareholder is the holding company of billionaire Len Blavatnik, Access Industries, with 38 percent of the shares. Blavatnik also holds a majority stake in Warner Music Group, the world’s third-largest music company, through Access Industries. The sports streaming service Dazn is also part of the portfolio.

Deezer was valued at around one billion euros in April when the plans were announced. Ambitious goals with a view to future sales development were also presented at this event. Accordingly, this should increase from around 400 million euros a year to one billion euros in 2025. From then on, Deezer should also be in the black, it said; last year the operating loss was 120 million euros.

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