Deezer plans to enter the Paris Stock Exchange "at the end of July"

Europe 1 with AFP 9:17 a.m., April 19, 2022

Seven years after its failed attempt, the French music streaming platform Deezer will enter the Paris Stock Exchange "at the end of July" via the SPAC (investment vehicle) I2PO owned by the Pinault family, Matthieu Pigasse and a former manager. from Warner Media.

"I2PO and Deezer have entered into a definitive agreement to combine with a view to listing the global music streaming platform on the stock exchange", write the two entities in a joint press release published on Monday, specifying that the transaction will value Deezer at 1.05 billion. euros.

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This IPO will be through a SPAC, a company launched to raise funds and enter a stock exchange, with the project of subsequently buying an unlisted company in a sector defined in advance.

When an agreement is reached with a target company, it merges with the SPAC, and becomes a listed company, after a less complicated process for it than for a traditional IPO.

With this merger, Deezer and I2PO expect to achieve a turnover of "one billion euros by 2025".

"Take Deezer to another dimension"

Created in 2007 and competitor of Spotify, Deezer indicates that it is available in 180 countries.

It has more than 9.6 million subscribers and in 2021 generated a turnover of 400 million euros.

The merger should be effective "at the end of July", said Iris Knobloch, chair of the board of directors and general manager of I2PO.

Dedicated to entertainment, this SPAC was launched in the summer of 2021 by the Pinault family, Matthieu Pigasse and the latter.

The merger of the two companies will take place "subject in particular to the approval of the general meeting of shareholders of I2PO and the general meeting of shareholders of Deezer", scheduled for the end of June-beginning of July, specifies the press release.

"This is a perfect marriage and a transformative transaction, which will create value because Deezer is a unique asset in the music streaming landscape with considerable opportunities for future growth", welcomed Iris Knobloch.

"For us, it's the right time to take Deezer to another dimension," added Jeronimo Folgueira, CEO of Deezer.

In 2015, Deezer had attempted an IPO before giving up at the last minute on the grounds of unfavorable "market conditions".

"Today we are a bigger company driven by a streaming sector that is experiencing strong momentum," he told AFP.