French financial royalty falls flat in music SPAC

Deezer SA

19/04/2022 10:52

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are his own.)
    By Liam Proud
    LONDON, April 19 (Reuters Breakingviews) - A blank-cheque
vehicle backed by billionaire François-Henri Pinault and banker
Matthieu Pigasse struck a $1 bln deal with Deezer. The European
music streamer has carved out a niche and may fend off Spotify.
But the SPAC is paying a higher multiple for a slower-growing
company.        
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    CONTEXT NEWS
    - French music-streaming group Deezer on April 18 announced
plans to merge with I2PO, a special purpose acquisition company
backed by billionaire François-Henri Pinault and investment
banker Matthieu Pigasse. 
    - The deal values the Spotify Technology rival at just over
1 billion euros. Deezer’s revenue in 2021 was 400 million euros,
roughly 5% more than the previous year. The company’s top line
shrank slightly in 2020.
    - I2PO shares were up 0.5% at 9.95 euros at 0750 GMT on
April 19.

 (Editing by Ed Cropley and Streisand Neto)
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