Why Deezer Abandoned IPO Plans
According to Billboard reports, Apple Music’s damage to Pandora (contributing to a sharp slowdown in growth of listeners and listening hours), was a factor in Deezer’s decision to pull its initial public stock offering.
The chairman of Deezer’s board, Didier Bench, told the Wall Street Journal the company changed its mind after seeing Pandora shares fell 36% last week and said “it’s better for us to wait a bit.”
Netflix’s disappointing third-quarter also factored into the decision not to go public.
Deezer pays over three-quarters of its revenue to rights holders and doesn’t generate revenue on two out of five subscribers. They reportedly are trying to fix the problem by switching its emphasis to standalone subscribers and depending less on mobile carriers.
However they decide to proceed, Deezer will need to make a move before the window shuts.
We’ll have to stay tuned to see how the move they do make effects indie musicians long term.
0 Comments