Deezer Streaming Service, Valued at $1.1 Billion, Strikes SPAC Deal to Go Public

The France-dependent streaming service Deezer, which has a fairly lower profile in the U.S. but is 1 of the world’s most significant streamers, is merging with a special-intent acquisition corporation (SPAC) with an eye towards likely community at a $1.13 billion valuation, the businesses told the Wall Street Journal.

Deezer, which launched in 2007, is merging with Paris-mentioned I2PO SA. According to WSJ, it is a so-termed blank-check out company backed by France’s Pinault family, the controlling shareholder of Gucci-operator Kering, as perfectly as Centerview Associates banker Matthieu Pigasse. The motor vehicle is headed by previous WarnerMedia govt Iris Knobloch.

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A rep for Deezer declined Variety’s requests for even more remark.

Paris-centered Deezer has 9.6 million subscribers and generated revenue of €400 million in 2021, the firm explained. In addition to a new music catalog of 90 million-furthermore tunes, it also offers as podcasts, audio publications and radio channels.

Deezer attempted an IPO in 2015 but backed off soon after a steep drop in listeners at Pandora radio cooled the marketplace for streaming solutions. Pandora was obtained in 2018 by Sirius XM Holdings Inc. for $3 billion.

Whilst Deezer has a 29% market place share in France and 17% in Brazil, its world wide access is just 2%, when compared with 31% for globe chief Spotify, 15% for Apple New music and 13% for Amazon Songs, the three premier vendors.

“What we’re striving to do with our partners is replicate the Apple and Amazon method, but we provide the new music merchandise and they deliver the person foundation, so alongside one another we can replicate that product,” Jeronimo Folgueira, Deezer’s main executive (pictured above), informed the WSJ. “We have to have to compete versus them and our companions want to contend towards them, and together we can contend improved.”

In a assertion, Deezer mentioned that most of its existing shareholders will continue being invested in the enterprise, such as Kingdom Holding Co., which is controlled by Saudi Arabian billionaire Prince al-Waleed bin Talal, and Access Industries, the industrial conglomerate founded by billionaire Len Blavatnik that controls Warner Tunes Team Corp. Other Deezer buyers incorporate Common Audio Group, Sony Team Corp. and French telco operator Orange SA.

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