Deezer, Spotify’s French rival, aims to go public via SPAC at a valuation of $1.3 billion

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PARIS — French music streaming service Deezer is merging with a special-purpose acquisition company and aims to go public at a valuation of 1.05 billion euros, or about $1.13 billion, the companies said. .

The Parisian competitor of Spotify Technology SA SPOT,
-1.35%
and other music streamers has 9.6 million subscribers and generated revenue of €400 million in 2021, Deezer said in a statement. The music streaming service offers listeners a catalog of more than 90 million songs, as well as podcasts, audiobooks and radio channels.

Founded in 2007, Deezer merges with SA I2PO listed in Paris,
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The company is a so-called blank check company backed by the French Pinault family, the majority shareholder of Kering, owner of Gucci, as well as Centerview Partners banker Matthieu Pigasse. The vehicle is headed by former WarnerMedia executive Iris Knobloch.

The Wall Street Journal reported last week that the two parties were close to an agreement.

The transaction is the latest indication of investors’ appetite for music, which was on a tear in recent years, boosted by streaming. Overall, revenue for the global recorded music industry grew 18.5% last year, more than double the average rate of the previous four years, according to data from the International Federation of Music. phonographic industry.

An expanded version of this report appears on WSJ.com.

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