Deezer hits pause on plans for first music streaming IPO

October 28, 2015
Deezer's catalogue of 35 million songs is available in 180 countries and has attracted 6.3 million subscribers
Deezer's catalogue of 35 million songs is available in 180 countries and has attracted 6.3 million subscribers

France's Deezer has postponed its planned IPO, citing market conditions, in what would have been the first music streaming service to go public.

The , which sought to raise at least 300 million euros ($330 million), said it "will review its fundraising options in the future" in a statement released on Tuesday.

"Deezer is well funded and well positioned as it continues to pursue its ," it added.

The company had favoured an IPO over private funding to give it more visibility as it seeks to take on its better-known Swedish rival Spotify in a music streaming market that is becoming more crowded with the entry of Apple.

The IPO would have valued Deezer at between 900 million and 1.1 billion euros, just a fraction of Spotify's estimated value of more than $8 billion.

Founded in 2007, the company raised its last private funding of 100 million euros from Russian-American billionaire Len Blavatnik in 2012. Deezer's catalogue of 35 million songs is available in 180 countries.

With 6.3 million subscribers and 16 million individual users each month, Deezer is still tiny compared to Spotify, which claims 75 million users, of whom 20 million subscribe to its paying version.

While not yet profitable on a global level, Deezer reported in 2014 a 53 percent jump in revenue to 142 million euros, and it is aiming to exceed 750 million euros in revenue by 2018.

Explore further: Music-streaming firm Deezer seeks 300 mn euros at IPO

Related Stories

French music-streaming service Deezer plans IPO

September 22, 2015

French music-streaming service Deezer said Tuesday it plans to launch an initial public offering on the Paris stock exchange by year's end aiming to consolidate its position in the online music market.

Deezer aims to enter US market in 2014

November 20, 2013

Online music streaming service Deezer aims to expand to the United States next year, one of the last remaining untapped markets for the French pioneer of legal music services, the company's co-founder said Wednesday.

Spotify gets investment as it faces competition from Apple

June 10, 2015

Music streaming company Spotify said Wednesday it has gotten a new investment from a Nordic telecoms company as it looks to compete globally, particularly with a rival service that Apple is due to launch this month.

Recommended for you

Semimetals are high conductors

March 18, 2019

Researchers in China and at UC Davis have measured high conductivity in very thin layers of niobium arsenide, a type of material called a Weyl semimetal. The material has about three times the conductivity of copper at room ...

Researchers discover new material to help power electronics

March 18, 2019

Electronics rule our world, but electrons rule our electronics. A research team at The Ohio State University has discovered a way to simplify how electronic devices use those electrons—using a material that can serve dual ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.