PARIS — French music streaming service Deezer is merging with a special-purpose acquisition company and aiming to go public at a €1.05 billion, or about $1.13 billion, valuation, the companies said.
The Paris-based competitor to Spotify Technology SA
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, audio books and radio channels.
Founded in 2007, Deezer is merging with Paris-listed SA
The firm is a so-called blank-check company backed by France’s Pinault family, the controlling shareholder of Gucci-owner Kering, 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 both sides were nearing a deal.
The transaction is the latest indication of investor appetite for music, which has been on a tear in recent years, boosted by streaming. Overall, the global recorded music industry’s revenue grew by 18.5% last year—more than double the average rate of the preceding four years, data from the International Federation of the Phonographic Industry show.
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