The French platform had already paid the price for a failed attempt seven years ago.

Deezer took its first chaotic steps on Tuesday morning on the Paris Stock Exchange, despite conditions deemed more favorable for players in music streaming, a booming market.

The action of the French music streaming platform Deezer failed to stop its fall Tuesday morning for its listing on the Paris Stock Exchange and lost 35% two hours after the start of its listing.

The title fell 35.06% to 5.52 euros at 10:52 a.m., against 8.50 euros for its opening price, in a market down 1.12%.

“European companies are the best”

The French competitor of the Swedish group Spotify made its debut on the Paris Stock Exchange on Tuesday, a few minutes after its boss rang the bell to open the market, alongside the Minister of the Economy Bruno Le Maire.

“You have to grow, conquer new markets, like the American market,” said the minister.

"I do not accept seeing all American companies come to Europe, without seeing European companies go to the United States to explain to our American friends that European companies are the best", added Bruno Le Maire.

" It is the right time "

A few days earlier, Jeronimo Folgueira, managing director of Deezer since July 2021, had pointed out that for this "second attempt" on the stock market, "the situation is different from what it was in 2015".

“Music streaming is really established, it accounts for almost two-thirds of recorded music revenue, which was not the case before,” he explained.

“The state of the business is much better today than it was seven years ago.

The company has changed, the market has changed: it's the right time to take this step and become a listed company", he added, while acknowledging that the context is "difficult at the moment" for technology stocks. in the financial markets.

Entry through an investment vehicle

To succeed this time, the main shareholders of Deezer – in particular the Anglo-American billionaire Len Blavatnik who holds 43% of the shares – have chosen a less risky introduction system, via a Spac, an investment vehicle.

Spac I2PO, founded by the family of French billionaire François Pinault, French businessman Matthieu Pigasse and former WarnerMedia executive Iris Knobloch, also present on Euronext on Tuesday, raised funds on the stock market to facilitate the listing of Deezer and has already collected 143 million euros.

2% of the global market

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

The strategy of Deezer, which wants to more than double its revenues by 2025, is to bet on music, its universe and its technology, unlike Spotify which multiplies the launches of podcasts or Amazon which focuses on audio books.

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 intends above all to join forces with players already established in several key markets to rely on existing customer bases: the operators Orange in France and Tim in Brazil, or the RTL group in Germany.

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  • Economy

  • Deezer

  • Spotify

  • Sotck exchange

  • music streaming

  • Paris stock exchange

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