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Spotify Files To Go Public On NYSE; Chief Content Officer Leaves

Spotify-IPO-010818-lt.jpg

Spotify, the world's largest paid music streaming service, filed to go public on the New York Stock Exchange in 2018, reports said. Meanwhile, ahead of the planned public offering, Spotify's chief content officer Stefan Blom announced his departure last week.

The Swedish company, which has been valued at about $15 billion, reportedly sent confidential documents to the SEC in late December aiming to list shares in the first quarter of this year. The IPO of the music, podcast, and video streaming service that was officially launched in 2008 has been widely speculated since early 2014.

As per reports, the music provider would not be going for a traditional initial public offering as it gets steady cash from around 70 million paying subscribers and does not need more funding. Instead, it is said to attempt a unique, direct listing, which essentially allows private stakeholders start trading their shares on a public exchange. This would avoid underwriting fees and restrictions on stock sales by current owners.

Under the method, Spotify will get to keep the documents private until at least 15 days before the share offering is effective.

Spotify reportedly would be the first major company to use the direct listing. Until now, the method has been used by small issuers and real estate investment trusts. If successful, the operation is said to pave way for other big tech companies, including Airbnb and Uber.

Spotify is led by Swedish entrepreneur and co-founder Daniel Ek. Last week, Spotify said in a tweet that it has 70 million subscribers. The company counts Apple and Amazon.com as its main rivals.

The company lasy year hired Goldman Sachs Group Inc., Morgan Stanley and Allen & Co. to assess its options for a public offering.

by RTT Staff Writer

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