Music streamer Deezer goes public via SPAC at $1.1 billion valuation – TechCrunch

A European music streamer, Deezer is going public via a SPAC deal, valuing competitor Spotify at $1.1 billion. Deezer will merge with “blank check” company I2PO, which is run by former WarnerMedia executive Iris Knobloch.

Founded in 2007, the company had previously attempted an IPO in 2015, only to buck the trend and increase Series E and Series F rounds in 2016 and 2018. At the time of its first IPO attempt, investors worried about the profitability of music streaming. , since Pandora had just lost nearly $86 million in one quarter.

Since then, very resource-rich streamers like Spotify, Amazon and Apple have grown steadily, renewing market interest in music. But Deezer has also struggled to compete with these behemoths – in Q2 2021, Deezer held just 2% of the global music streaming subscription market, despite being more popular overseas than in the states. -United. In France and Brazil, the company holds 29% and 17% market share respectively.

Picture credits: MIDiA

According to the Wall Street Journal, Deezer don’t make money however, but according to this deal, it hopes to be profitable by 2025. Deezer currently has 9.6 million subscribers, offers 90 million streaming songs as well as podcasts and audiobooks, and has generated 400 million euros of income last year. Spotify, for comparison, has 180 million paying subscribers and a total of 406 million monthly active users, including its free tier. But Deezer offers HiFi audio, while Spotify still hasn’t taken that leap. Deezer has also expressed interest in a more payment model suitable for musicianswhile Spotify has been criticized by artists for offering low streaming payouts.

“Today marks an important milestone in Deezer’s history as we embark on a journey to become a listed company on Euronext Paris,” Jeronimo Folgueira, CEO of Deezer, said in a statement. “We are uniquely positioned in the growing music streaming industry, with a highly competitive product, a clear strategy and an experienced and renewed management team to seize this opportunity and create substantial shareholder value.”