Streaming: Deezer goes public

Streaming: Deezer goes public

Tuesday, July 5, the Euronext bell will ring for the IPO of Deezer, the French leader in music streaming. The platform is redeemed by an empty shell already listed, a Spac, a technique that bypasses the tedious traditional listing process. “I fell in love with it,” enthuses Matthieu Pigasse. The banker has already made two Spacs in France, including that of audiovisual producer Mediawan. This rock fan has teamed up this time with the CEO of the Kering group, François-Henri Pinault, and the ex-director of Warner Media Europe, Iris Knobloch, to relaunch Deezer via I2PO. A risky bet: after years of standing still, will Deezer finally take off?

Until then, the pioneer of online music has accumulated failures. Eighteen years after its creation, it has remained a small local player, when its great rival Spotify, which left at the same time, has established itself as the world number one. The Swedish champion, valued at 20 billion dollars, has garnered 182 million paying subscribers worldwide when Deezer has only 9.6 million. For its entry on Euronext, Deezer is estimated at 1.05 billion euros. A value that has not progressed since an unsuccessful IPO attempt in 2015.

Promising beginnings

The story got off to a good start. In 2006, the young entrepreneur Daniel Marhely invented Blogmusik, “the first on-demand music jukebox on the Web”, which he renamed Deezer in 2007 after being forced by Sacem to close its site. Strongly supported by the public authorities, which make it a banner of French Tech, the start-up raised 100 million in 2012. A record for the time. In 2013, she followed Spotify, with 5 million subscribers. Then, it is left behind at a dizzying speed: at the cost of massive marketing expenditure, Spotify exceeds 20 million paying subscribers in 2016, 100 million in 2019. “The Swedish platform raised 3 billion, Deezer 300 million in cumulative The investment capacities were not the same”, analyzes the deputy general manager Stéphane Rougeot, recruited in January by the new general manager Jeronimo Folgueira.

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