Deezer, the rival music streaming service to the likes of Spotify and Apple Music, is reportedly taking one other run at going public.
Paris-headquartered Deezer’s final try at a public itemizing fell aside in 2015.
The corporate launched an IPO try on the Paris inventory trade in October that 12 months, however slammed the brakes on the method simply three days earlier than its deadline, citing troublesome “market situations”.
At present, these market situations look quite completely different: In 2015, in response to up to date IFPI figures, the worldwide recorded music trade generated $14.7 billion yearly, of which simply $2.8 billion (19%) got here from streaming. In 2021, the worldwide recorded music trade generated $25.9 billion yearly, of which $16.9 billion (65%) got here from streaming.
Deezer going public in 2022, then, doubtlessly represents a chance for the French platform to understand worth from the explosion in progress of the worldwide music streaming market over the previous decade.
One particular person who could also be notably eager on the conclusion of that worth is Len Blavatnik, the founding father of Entry Industries.
Entry, the majority-owner of Warner Music Group, elevated its stake in Deezer in 2016 to take a controlling share within the music streaming firm.
Monetary information from France in the present day means that Len Blavatnik, as a Helpful Proprietor, personally controls a 28.95% stake in Deezer.
Different modern-day shareholders in Deezer embody telco firm Orange, plus Saudi Arabia’s Kingdom Holding Firm.
In response to Wall Road Journal sources, Deezer is presently nearing a deal to go public through a merger with a Particular Goal Acquisition Firm (SPAC).
Who’s that SPAC? They are going to actually be acquainted to MBW readers.
Final summer season, we informed you a few new Paris-based SPAC – I2PO – which had round $325 million in capital at its disposal, and was backed by the billionaire Pinault household’s holding firm.
“The worth of music as we’ve seen it rising over the past years, the trail to me is simply upwards.”
Iris Knobloch, I2PO, talking final 12 months
MBW revealed on the time that I2PO – dubbed the “first European SPAC devoted to the leisure and leisure sector” had a selected curiosity in contemplating a merger with a music trade firm.
Iris Knobloch, Chairwoman of the Board of Administrators and Chief Govt Officer of I2PO, informed MBW: “The worth of music as we’ve seen it rising over the past years, the trail to me is simply upwards.”
The WSJ now reviews that Deezer and I2PO are getting nearer to agreeing a deal that might, if agreed, take Deezer public, and might be introduced within the coming days.
The WSJ doesn’t try and put a valuation on Deezer, however right here’s somewhat potted historical past of that topic:
Again in 2015, when it scrapped that IPO bid in Paris, paperwork urged that Deezer was trying to boost round USD $400 million;
In 2018, Deezer privately raised $185 million from current traders (together with Orange and Entry) plus Kingdom Holding Firm. That increase, mentioned Deezer, gave it a valuation of €1 billion (approx $1.1 billion in in the present day’s cash);
In 2020, Deezer struck a deal with TV Azteca / Grupo Salinas in Mexico which the music streamer mentioned valued its firm at €1.3 billion (approx US $1.4 billion)
Deezer says it has 16 million month-to-month lively customers worldwide.
Current Midia Analysis information urged that Deezer had a 2% share of all world music streaming subscribers on the finish of June final 12 months. That put Deezer’s paying viewers at round 10.5 million subs.
In Might final 12 months, Deezer employed Jeronimo Folgueira as its new CEO. He succeeded Hans-Holger Albrecht, who had led Deezer since 2015.
Earlier than becoming a member of Deezer, Folgueira was CEO of on-line relationship firm Spark Networks, which is publicly traded on the NASDAQ.
In January this 12 months, Deezer introduced it had employed former Orange govt Stephane Rougeot as Chief Monetary Officer and Deputy CEO.
Like Folgueira, Rougeot additionally introduced expertise of operating public corporations to Deezer.
Seven years in the past final month, the then-CEO of then-independent label Ministry Of Sound, Lohan Presencer, memorably blasted a senior Deezer rep – alongside a senior govt at fellow streamer Rdio – dwell on stage at Cellular World Congress in Barcelona.
Presencer mentioned: “You’re very good guys and I’m certain you’re employed very arduous… [but] you espouse the rhetoric of supporting the music trade when the fact is that you simply work for corporations who’re funded by traders, who need to see an exit on that funding. So your goal is to develop your person base to inform a narrative that’s such to be able to IPO or you’ll be able to promote.”
Presencer added: “You aren’t those investing in growing expertise. You aren’t those signing artists.
“Our artists, our funding, our artistic neighborhood is contracting day by day on account of the free providers which might be on the market giving music away, with the target of an exit on the finish of it.”Music Enterprise Worldwide
