Deezer Nears Going Public by Merging With a SPAC

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Deezer Nears Going Public by Merging With a SPAC
15 Apr 2022
5 min read

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News Synopsis

French music streaming service Deezer is nearing a deal to go public by merging with a special purpose acquisition company backed by the family behind luxury titan Kering SA as consumer demand for music continues to grow. 

The Paris-based music streaming platform has 16 million active users and is available in more than 180 countries, according to its official website. It offers listeners a catalog of more than 90 million songs along with podcasts, audiobooks, and radio channels. 

The talks show that Deezer has attempted a second IPO since its inception in 2007. The company previously abandoned its IPO plans in 2015 after a decline in active listeners at Internet radio operator Pandora Media Inc, expressing concern about the outlook for streaming services. Deezer has raised 160 million euros ($173 million) ever since, at a market value of 1 billion euros in 2018 to help fund its expansion. 

With the growth of streaming revenues from services, the fortunes of the music business have also improved in recent years. It includes revenues from services like Spotify and Apple Inc’s Apple Music offsetting the decline in sales of physical music and downloads. 

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