. SPAC IPOs are raising less money and fewer SPACs are merging with companies and putting their proceeds to work.
Not even a high-growth, high-opportunity streaming media company in a hot market could muster much support. Anghami, an Abu Dhabi-based music streaming platform, went public in February by merging with a SPAC. Although the long-delayed deal eventually got done, nearly all the SPAC’s shares were redeemed for cash value before the merger. In other words, the SPAC’s investors weren't interested.
That’s the cloudy environment that I2PO, Deezer’s suitor, is wading into. In today’s volatile market, SPAC investors may favor publishing companies and record labels over digital platforms because music assets are seen as counter-cyclical to prevailing market trends – if the economy goes into a recession, people will still buy music.