Sensing Horrific Disaster Ahead, Deezer Calls Off Its IPO

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What could possibly go wrong?

Pandora shares are down 37 percent in the last week alone, thanks to a recent quarterly loss of $85.9 million.  Spotify is delaying its IPO indefinitely against continued licensing uncertainty.  After just three months, Apple Music now has more paying subscribers than Deezer.

But half of Deezer’s 6.34 million subscribers haven’t even accessed the service once in the past month.

Perhaps catching a whiff of pungent reality, Deezer has now smartly decide to indefinitely postpone its initial public offering (IPO) in Paris, citing ‘market conditions’.  The well-funded Franco-streamer is staying on the sidelines indefinitely, while perhaps focusing on its core proposition and/or waiting for ‘conditions’ to improve.

Deezer, which is now present across 180 countries excluding the US, has roughly $150 million in funding.  Access Industries, headed by Russian billionaire Len Blavatnik, is by far the biggest backer.

9 Responses

  1. Remi Swierczek

    Vive la France

    Prudent French investors DID NOT LISTEN to NY contraband.

    SUBSCRIPTION STREAMING HAS $20B GLOBAL INCOME LIMIT AND KILLS MUSIC and any logical and common sense methods of music monetization!

  2. Adam

    Well funded? They’ll be out of cash by the end of next year. IPO of last resort and now what?

    Likely to be a lot more consolidation in streaming in the next 12-24 months. Market is turning sour and cash is short. Only the strong (ie. actually well-funded) will survive.

  3. Shlomo

    Yet most of DMN readers, industry pundits and execs still preach streaming will save the music industry and be great for all. Most of you are morons.

    • Remi Swierczek

      Honorable Messrs. Grainge, Morrison and his Royalty Len Blavatnik are the the only morons!

      Chief of UMG deserves the title of Moron One with the biggest number industry wide suicide activities originated under his watch in his great organization.

  4. lroosemusic

    End streaming now!
    End MP3s now!

    Bring back the $19.99 CD to restore lost income in the music industry!