Billionaire and Kering founder François Pinault and other founders of I2PO, a blank-check firm are set to acquire French music streaming platform Deezer at a valued deal of over $1 billion USD.
According to Business of Fashion, Pinault and two other members of I2PO are planning on buying Deezer for approximately $1.16 billion USD and take the company public. Currently, the deal is allowing the combined entity is to raise at least 120 million EUR with original investors so plans to go public in July can proceed. Deezer is considered and unprofitable streaming platform with direct competition from major platforms like Spotify and Apple Music.
Deezer’s largest markets include France, Brazil and Germany and will be expected to expand to the U.S. and U.K. post-acquisition. By 2025, Deezer aims to reach profitability and at least 1 billion EURO in revenue. The acquisition will not displace the CEO as the company plans to keep Jeronimo Folgueira as CEO. Originally, Deezer planned to go public in 2015, but the IPO was later postponed due to market conditions. Just last week, The Wall Street Journal reported that Deezer has plans to complete a deal to go public via SPAC with I2PO.
The acquisition will undoubtedly expand Pinault’s portfolio. It remains to be seen if Deezer will be implemented into future Kering operations.
In other Kering news, Gucci recently announced it will hold its next fashion show in Apulia, Italy.
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