At VivaTech, seduction operation for Deezer before its IPO

At VivaTech, seduction operation for Deezer before its IPO

Operation seduction for Deezer: the music streaming platform took advantage of its presence on Thursday at the VivaTech show to tout its model based on partnerships, a few days before its new attempt to go public.

Deezer has set July 5 for its first day of listing on the Paris Stock Exchange via the Spac I2PO (investment vehicle) held in particular by the Pinault family, we learned from the company on Thursday.

“An IPO is something of a rebirth for a company. It is also the success of a goal and a burst of energy,” explained Deezer managing director, Spaniard Jeronimo Folgueira.

Arriving a year ago, he was the youngest European CEO of the New York Stock Exchange after overseeing the listing of online dating group Spark Networks.

Deezer’s new listing project comes seven years after a first attempt to invest in the Paris stock market in 2015, aborted due to unfavorable market conditions at the time, especially after the announcement of the launch of Apple Music.

This time, the main shareholders of the platform – in particular the Anglo-American billionaire Len Blavatnik who holds 43% of the shares – have chosen a less risky introduction system.

“Of course, the markets are difficult at the moment” and many companies prefer to postpone their listing plans, but “it is the right time for Deezer because the company is mature and we have secured significant funding”, explained Mr. Folgueira.

“I2PO not only brings us capital but also expertise,” he added.

A Spac is a financial vehicle without its own commercial activity, the purpose of which is to raise funds on the stock market before merging with another company and thus facilitating its listing.

– Partnerships –

This investment vehicle, founded by the Pinault family, businessman Matthieu Pigasse, and former WarnerMedia executive Iris Knobloch, should enable the platform to raise between 135 million and just over 400 million. euros, I2PO had indicated.

The valuation of Deezer would then reach 1.05 billion euros, down 23% since the entry into the capital of the Mexican television group Azteca in 2020.

Because, for the moment, the company accumulates losses which reached 123 million euros last year for a turnover of 400 million euros.

Launched in 2007, the subscription music listening service claims nearly 30% of the market in France, but its 9.6 million subscribers only represent 2% of the global music streaming market, far behind the Swedish leader Spotify ( 31% market share), Apple, Amazon and Tencent, according to MIDiA.

The strategy of Deezer, which wants to more than double its income by 2025, is to bet on music, unlike Spotify, which multiplies the launches of podcasts and the recommendations of playlists of background music.

In front of a hundred guests Thursday at VivaTech, the French unicorn organized several round tables and presentations in order to “highlight” examples of its partnership strategy, with the presence of speakers from RTL, Sonos, or Orange.

To take advantage of the rapid growth of the global streaming market (+26.4% users in one year in the second half of 2021), Deezer also intends to join forces with players already established in several key markets to rely on existing customer bases.

The company has thus joined forces with the operators Orange and SFR in France, with a subsidiary Telecom Italia in Brazil, and recently with RTL in Germany.

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