Spotify Going Public
Music streaming service Spotify filed for a direct listing of its shares on Wednesday, February 28. For the first time, the company will lay out its financial data. As a result, some analysts cheered the move. However, others questioned how the music service could turn a profit from its growing subscriber base.
Ideally, Spotify would trade as SPOT on the New York Stock Exchange. The company is taking an unusual path to the U.S. public markets. This is because it will offer a direct listing that will let investors and employees sell shares. Furthermore, Spotify will not raise new capital in the process nor hire a Wall Street bank or broker to underwrite the offering.
Because the company will not issue any new shares, it did not specify a listing price. However, based on private transactions, estimates conclude Spotify is worth around $19 billion.
Initially, Spotify was launched in 2008 and is currently available in more than 60 countries. As a matter of fact, Spotify is one of the largest music streaming companies in the world. Moreover, it considers services from Apple, Amazon, and Google as its main rivals.
Continue reading Spotify Plans To Go Public at One EDM.
Source: oneedm.com
