Why did Deezer's SPAC fail?

Deezer went public via SPAC in July 2022 at €1.4B valuation after the SPAC market had collapsed. The stock fell 70%+ on day one. Deezer's fundamental problem: as global streaming's #4 player with 9M subscribers vs Spotify's 200M+, there was no convincing growth story.

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Deezer (SPAC crisis)

France's music streaming pioneer. SPAC peak. 90% value destruction.

timing

Founded	2007
Closed	2022
Country	France
Sector	Media
Raised	$750M
Founder	Daniel Marhely

80%

20%

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Documented cause

Deezer, France's music streaming pioneer with 9M paid subscribers, went public via SPAC in July 2022 at a €1.4B valuation. The SPAC market had already collapsed by then. The stock fell 70%+ on the first day of ...

trading and continued declining. Deezer's fundamental problem: Spotify had 10x the subscribers with 20x the marketing budget. As a distant #4 in global music streaming, Deezer's growth story was struc

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“Going public via SPAC in a market that has already peaked compounds two problems: market timing risk and competitive pos...”

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