Deezer has decided to pull back from its announced IPO, citing worrisome market conditions. Didier Bench, chairman of Deezer says that Pandora's stock dropping 36 percent in the past week and the strength of Apple Music's numbers have contributed to the company changing their mind about entering into a public market at this time.
Speaking to the Wall Street Journal, Bench also adds that Netflix's disappointing third quarter also weighed in on their decision.
He did not nix the idea of going public at some point in the future. That option is still on the table for the French streaming service. "It's better for us to wait a bit," said Bench.
Before the company decided to pull back from their IPO on Tuesday, things started to look a little shaky. On Monday it was reported by GlobalCapital that Deezer's offering had not closed and the Pandora drop in stock was cited as a primary reason.
Analysts at the time of the announcement last month floated a possible valuation for Deezer at around $1.12 billion, but company executives had not revealed how much money they hoped to raise through the IPO.
Deezer announced last month its plans to take the company public despite not have the revenue or subscriber base as some of its competitors like Spotify. It boasts 6.3 million subscribers and is available in over 180 countries with some getting Hi-Fi streaming quality. The company's revenue grew 41 percent in the first half of 2015 to €93 million, but the firm remained square in the red losing €9 million during that period with most of its money going directly to royalty payments.
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