Deezer and I2PO to go public

The news was revealed in a joint statement by the two companies following last week’s widespread speculation that the two companies intended to list publicly on the Euronext Paris bourse.

The French companies are aiming for a valuation of more than €1.05bn ($1.13bn) for the music streaming company. After the listing, the owners – including Access Industries, Universal Music Group, Warner Music, Sony, Kingdom Holding Company and Orange, among others – will retain their stakes in the platform. I2PO, meanwhile, will be renamed to Deezer upon completion of the merger.

The move is meant to be a “catalyst for Deezer’s next stage of growth”, which includes reaching €1bn revenue by 2025. Deezer says it turned over more than €400m in revenue in 2021 and now has about 9.6 million subscribers globally.

“With its well-established brand, first-class management team and scalable platform, Deezer is poised to continue to capture a significant share in the booming music streaming growth,” I2PO CEO and board chairperson Iris Knobloch said. “This is a perfect match and a transformational deal that will deliver long-term value creation for our shareholders, as Deezer is a unique asset with considerable strategic avenues for future growth.

“With Deezer’s hybrid B2B and B2C strategy to enter key international markets, its highly competitive technology and focus on ESG [environmental, social and Governance], we are confident that the company is well-positioned to disrupt and consolidate while providing a high-quality music streaming service to millions of users around the world.”

Deezer CEO Jeronimo Folgueira said: “Today marks an important milestone in Deezer’s history as we embark on a journey to become a publicly traded company on Euronext Paris. I am thrilled to partner with I2PO who will provide us with the expertise, the global network and the capital we need to execute our strategic plan.”

This is not Deezer’s first attempt to list publicly. In 2015, the company pulled out of an initial public offering on Euronext Paris three days before the deadline, due to tough market conditions, the company said.