Seven years after an aborted flotation, French music streaming platform Deezer failed to draw a lot investor curiosity for its Paris market debut and its shares fell 11% in early dealing on Tuesday.
Deezer opened at 8.50 euros, earlier than heading all the way down to 7.950 euros per share by 0739 GMT.
Deezer and its rivals characterize a shift within the music trade away from shopping for and downloading tracks to listening on-line to songs saved remotely.
“The sector is super competitive: There are multiple services (Amazon Prime, Apple Music etc.) which are run by large U.S-companies with very deep pockets and strong ecosystems that can subsidise their business with other income streams and therefore they do not depend on the success of their music-platforms unlike “pure-play” firms do,” Manuel Mühl, DZ Bank analyst mentioned.
“In this sector we prefer investing into content (the music labels) vs. platforms that have to pay for that content so that they may distribute and monetise it over ads and subs,” he added.
In April, Deezer introduced plans for a inventory market itemizing in Paris in a deal valuing the enterprise at simply over 1 billion euros ($1 billion), with a Special Purpose Acquisition Company (SPAC), 12PO, arrange for the deal.
In 2015, Deezer needed to postpone preliminary IPO plans attributable to market circumstances.
Deezer’s bigger rivals embody Spotify, which carried out its preliminary public providing in 2018.
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Source: www.financialexpress.com”