Deezer goes public to counter competition

Deezer is a French band that has made a name for itself in the music world, more specifically in the field of online music listening on demand. The site now contains more than 35 million songs to choose from according to individual preferences. By mid-September 2015, the company announces that it will continue to evolve. In particular, its initial public offering is about to become a reality. If all goes well, the company’s value should approach or even exceed €1 billion.

Deezer is evolving

In the streaming field, growth is increasingly tough and Deezer, although a leader in its field, is no exception. It is necessary to always stand out in order to stay in the race. After an announcement in mid-September 2015, things are now coming to fruition with regard to Deezer’s initial public offering. On October 15, 2015, the company goes public, more precisely on Euronext Paris.

Deezer at the Stock Exchange

Deezer listed on the stock exchangeDeezer currently offers its shares for sale at a unit price of between €36.40 and €49.24. Initially, the company’s objective is to raise a minimum of 300 million euros, which would correspond to the sale of just over 8 million shares. If this initial public offering is successful, Deezer would acquire a total value likely to exceed €1 billion. However, it will be necessary to wait until 27 October 2015 to know the price of the offer. The shares will then be able to trade three days later, on October 30, 2015.

A strategic decision

It should be noted that Deezer’s decision to go public is purely strategic. His approach comes shortly after the revelation of Apple Music, the music streaming site competing with the apple brand. With this initial public offering, Deezer is demonstrating its desire to enter the big league. This is an operation that would broaden the group’s horizons while optimizing its visibility.

A risky bet?

Theoretically, Deezer’s bet seems very promising. Nevertheless, there is an underlying risk that should not be overlooked. First of all, it should be noted that this is the very first streaming site to try to go public. Secondly, it is a company that has not yet really reached maturity. Even if its turnover is constantly increasing, the business is not yet profitable.

deezer ceo
Hans-Holger Albrecht, CEO of Deezer

For information, its operating result was (still) negative for the first half of 2015. Moreover, it has to be said that Deezer is quite far behind its competitors, namely Spotify or Apple Music, not to mention YouTube. Anyway, Deezer does not intend to be overwhelmed by events and plans various actions to stand out from the crowd… Maybe we will soon find Deezer on binary option platforms or on Forex platforms with CFD, while waiting to observe its IPO and the first trends on its price.