Despite Serious Issues, Deezer Expects to Raise €300 Million On Its IPO

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It’s a streaming music IPO. What could possibly go wrong?

Earlier, we pointed to some very troubling subscriber numbers at Deezer, the Spotify competitor that still hasn’t set foot in the US and remains woefully unprofitable.  Previously, Deezer claimed to have amassed 6-plus million subscribers through an ex-US, global approach, but IPO filings revealed that roughly half were bundled subscribers that hadn’t even played a single song in the previous month.

And, just 1.54 million were paying the full subscription rate, part of a growing-and-glaring problem surrounding actual, paying users.

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Sounds wildly unpromising, though Deezer is now plowing forward with its initial public offering in Paris.  According to more details now filed with Euronext, Deezer is aiming to raise roughly €300 million ($334 million) on French Wall Street.

Specifically, Deezer will generate 8,241,758 new share at an expected valuation range of between €36.40 and €49.24 per share.  The resulting valuation, at least on paper, would land between  €884 million and €1.088 billion ($1 billion to $1.24 billion).

Deezer expects to kick-off as ‘DZR’ on Euronext by October 30th.

Image by Tomás Fano licensed under Creative Commons Attribution 2.0 Generic (CC by 2.0).

5 Responses

  1. Remi Swierczek

    I would expect more conservatism in Europe.
    Very sad to see any investors behind company that actually KILLS MUSIC INCOME and prevents any logical monetization. I guess Wall Street brainwashers have crossed Atlantic.

    • Literally Can't Even

      In the US, Spotify can’t IPO. Looks like the Wolf of Wall Street bullshit has crossed the Atlantic.

      • Remi Swierczek

        Three stooges:
        Mr. Grainge, Mr. Morris and Mr. Blavatnik are totally responsible for keeping $200 billion dollars of music goodwill obvious to an imbecile in smelly sub and ad supported $14B SWAMP.

        Need 1/2 hour with Larry Page to start sanity.
        We can double Google as we create $200B music business.
        Good start: convert global Radio and all of streaming to $100B discovery based music store by 2020.

        • Remi Swierczek

          It looks like Larry at Google or at least his lowyers on advertising dope will not listen!

          Time for MUSIC INDUSTRY and BOOK INDUSTRY to UNITE and change the “FAIR USE DOCTRINE”
          Combine artists and writers have much more political power than Google legal team and it scold be done NOW, before artist friendlly Obama administration is gone.

          Somewhat unfair development:
          The preacher of digital medieval and the biggest retardant of music, Google, will be the biggest
          financial winner of new happy for all LOGICAL reality!