Deezer, the France-based music streaming service backed by conglomerate Access Industries and telecommunications company Orange, has cancelled its proposed initial public offering on Tuesday citing market conditions.
Deezer operates a music streaming service that had around 6.3 million subscribers as of the end of June 2015. It had intended to spend the IPO proceeds on marketing in a bid to combat rivals such as Spotify, Rdio and Tidal.
The company initially filed for an IPO on the Euronext Paris market in September, and revealed earlier this month it planned to raise €300m ($332m) in an offering that could have valued it at more than €1bn.
However, it has now pulled out of the proposed flotation, asserting in a statement: “The company will review its fundraising options in the future. Deezer is well funded and well positioned as it continues to pursue its growth strategy.”
Deezer had raised more than $150m from investors including Access, which holds a 36.7% stake in the company, Orange (14.6%), DC Music (13.1%), Idinvest Partners (12.9%) and CM-CIC Capital Privé (5.3%).
Media company ProSiebenSat1 would have ended up with a 5% share of Deezer post-IPO as part of a June 2014 agreement to merge its own streaming service, Ampya, with the company.
Record companies Universal, Warner Music, Sony and EMI would have acquired a combined stake sized at more than 15% through a licensing agreement.