Big slap for the first day on the stock market for Deezer shares. The title collapsed 35% to its lowest at midday. At 4:00 p.m. the lesson was €6.20 for a morning introduction at €8.50.
Deezer is a music streaming site of French origin that offers free listening to millions of songs with advertising, or having an unlimited subscription without advertising.
- Downloads: 21
- Release date : 06/27/2022
- Author : Deezer-Mobile
- Licence : Free License
- Categories:
Music - Operating system : Android – Windows 10/11 – iOS iPhone / iPad / Apple Watch – macOS
Yet the music streaming market is booming. It is this trend that had pushed the leaders of the company to attempt the IPO.
“You must grow, conquer new markets, like the American market” had however urged the Minister of Economy Bruno Lemaire, present for the opening of the stock market. “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”.
“The situation is different from what it was in 2015”
The music streaming platform of French origin is not at its first attempt in this area. A first attempt to go public ended in failure 7 years ago.
“The situation is different from what it was in 2015,” Jeronimo Folgueira, CEO of Deezer since July 2021, assured AFP a few days ago. “Music streaming is really established, it represents almost two thirds of the income from recorded music, which was not the case before,” he explained.
In view of its IPO, the Deezer company had merged with the SPAC (for “special purpose acquisition company”) I2PO.
The French subscription music listening service claims nearly 30% of the market in France
This investment vehicle dedicated to the world of entertainment and leisure is co-owned by banker Matthieu Pigasse, Artemis, the holding company of the Pinault family and Iris Knobloch, former director at WarnerMedia.
The operation was to value Deezer at just over one billion euros. And in fact endorse its unicorn status, these tech companies valued at more than a billion euros.
Launched in 2007, the French music subscription service claims nearly 30% of the market in France. But its 9.6 million subscribers only represent 2% of the global music streaming market, far behind the leader Spotify (31% market share), Apple, Amazon and Tencent, according to MIDiA.