European music producer, Deezer is generally on the verge of a SPAC deal, valuing his Spotify competitor at $ 1.1 billion. Deezer will merge with I2PO, headed by former WarnerMedia CEO Iris Knobloch.
Founded in 2007, the company had previously attempted an IPO in 2015, only to become a course and promote Series E and Series F in 2016 and 2018. At the time of the first IPO attempt, investors were worried about profits. the flow of music. , as Pandora now loses nearly $ 86 million in a quarter.
Since then, streamers like Spotify, Amazon and Apple have just continued to grow, reviving market interest in music. But Deezer has also struggled to compete with these behemoths – as of Q2 2021, Deezer has only 2% of the global music video market, although it is more popular abroad than in the United States. France and Brazil, company 29% and 17% of market share respectively.
According to the Wall Street Journal, Deezer you are not making money With this deal, however, it expects to make a profit by 2025. Deezer now has 9.6 million subscribers, offers 90 million songs plus podcasts and audio books, and generates milyan 400 million in annual revenue. hore. Spotify, by contrast, has 180 million paid customers and a total of 406 million active users per month including its free rate. But Deezer offers HiFi audio, while Spotify has not yet made that jump. Deezer also expressed his interest in another music-friendly payment modelwhile Spotify has criticized artists for offering lower fees.
“Today marks an important milestone in Deezer’s history as we embark on a journey to become a public trading company at Euronext Paris,” Jeronimo Folgueira, Deezer’s chief executive, said in a statement. “We are particularly committed to the ever-evolving music industry, with highly competitive products, clear strategy and updated management team to take advantage of this opportunity and create a tangible value. shareholder. “