Jan 21, 2016 08:08 PM EST
Deezer, an online music streaming service that could potentially rival Spotify and other streaming services available at the moment just announces that it has raised $109 million. The company which had previously abandoned its plan to go public said that the money was raised from its two largest shareholders.
According to ABC News, Deezer's investment was obtained from the Access Industries and Orange, one of the biggest telecom company in French. Albrecht also said that the new investment will help Deezer to be able to utilize its new partnership with the phone carrier to grow its users internationally.
The Paris-based company abandoned its IPO plan after careful evaluation regarding the current economic situation. Its CEO, Hans-Holger Albrecht said as cited by Fortune that "With the global uncertainties of the current market, we felt it would be smarter to postpone our IPO and raise private money instead. This round of funding gives us more options, one of which is to go public."
According to the estimation, Deezer's initial plan is to raise $400 million through the IPO which would value the company at around $1.1 billion. The music streaming company was planning to sell 30 percent of its stake through the IPO but halted the plan just a few week before its scheduled listing date.
With six million active subscribers, Deezer is still a long way to rival Swedish-based company, Spotify which is currently evaluated at $8.53 billion with 20 million paying users. Its closest rival, Apple music had just also announced that they recorded a total of 10 million subscribers by the end of last year.
The Wall Street Journal reported that Deezer abandoned its plan after seeing other streaming service's shares plunging down last year. Among the worst performer is Pandora Media Inc. shares. The company's shares plunge down 35 percent after the company released a statement showing its massive settlement with record labels.
Besides that, video streaming company, Netflix also saw its shares plunge 10 percent after a lower than expected third-quarter earnings.
Deezer is also currently facing some problem in its deal with the telecom carriers as only 3.8 million of its users are generating recurring revenue while other users are only using a prepaid upfront.
However, with lots of investment coming directly from Access Industries, the company that also owns the Warner Music Group, Deezer can expect to make full use of the latest partnership. Deezer is expected to announce more new products in the future to attract more subscribers.
When Nick Collins was just 14 years old, he started his first business, which included around-the-clock phone calls and numerous questions from his parents. In fact, he began building his stout portfolio in the seventh grade by doing web design, incorporating creative content with brand strategies and plugging in a then-fledgling tech Flash.
Barry Gabster is the founder of InitiateU and is a leading proponent of the marketing mailer revolution, having already taken his company to 10x growth in 2021, alone. In fact, the exponential growth has seen the company rise from $800K-$8.5M just on word-of-mouth referrals.
If you think that the micro accounts are useful only for beginners who may not be able to cope with the fast dynamics of changing quotes on trading platforms, then this is not so. Professionalism grows out of these cent accounts.
Journalists love their jobs because they get to interact with people from all sorts of backgrounds and expertises, then turn around and share their knowledge with the world.
Rustam Gilfanov is a famous IT businessman, a founder of a large IT company, and a partner of the LongeVC Fund.
Bitcoin and cryptocurrency in general guarantee some amazing profits if invested correctly.
In the currency trading business, many individuals make mistakes. Since most individuals join this profession with too much excitement, they forget about efficient strategies. Instead of controlling their investment and execution process, most individuals make poor choices for trading.
In today's digital world, more and more people are investing in cryptocurrencies. These digital tokens have exploded into popularity over the past few years, and have grown to the point that there are now nearly over 6,000 of them, according to Statista.