Billionaire François Pinault and the other founders of Paris-based blank check company I2PO are buying music streaming platform Deezer for 1.075 billion euros ($1.16 billion) and plan to take it public, according to a Bloomberg report Monday April 18.
The combined entity will raise at least 120 million euros ($129.4 million) between original and new investors, and the entity plans to list Deezer in Paris once the deal closes, which is expected to happen around July, three people familiar with the deal told Bloomberg.
Deezer competes with Spotify, Apple Music and other music streaming platforms. Its biggest markets are France, Brazil and Germany and it wants to expand into the US and UK, the sources said. It is looking to expand through expanded partnership deals, including one it has with broadcaster RTL in Germany.
Additionally, Deezer aims to achieve profitability and 1 billion euros ($1.08 billion) in revenue by 2025, according to a statement from the company.
CEO Jeronimo Folgueira will retain his role after the merger, while chairman Guillaume d’Hauteville will be replaced by Iris Knobloch, one of the founders of I2PO and former Warner Media executive, before the end of the year. Banker Matthieu Pigasse, head of Centerview Partners in France, is the third founder of I2PO.
Deezer had canceled its previous attempt to launch an initial public offering (IPO) in 2015 due to market conditions.
Last week, ByteDance, operator of short video sharing platform TikTok and its Chinese cousin Douyin, launched music streaming app Qishui Yinyue (“soda music” in Mandarin) to compete with platforms operated by Tencent Holdings and NetEase.
Related: TikTok owner ByteDance is advancing the music streaming service on the continent
Qishui Yinyue works similarly to Resso, the ByteDance music streaming app introduced in some overseas markets three years ago.
The service offers over 10 million music songs, according to the app’s landing page on the App Store. It allows Douyin users to sync their favorite music playlists to the short video app. The app is still in beta phase, which requires an invite code.