Music streaming giant Spotify today filed for a $1 billion IPO (actually a DPO), although that figure is a placeholder that will likely change.
Spotify is a music, podcast, and video streaming service that was officially launched on 7 October 2008. It is developed by startup Spotify AB in Stockholm, Sweden. It provides DRM–protected content from record labels and media companies. (Source: Wikipedia )
Why Spotify’s IPO matters to you: Spotify plans to utilize a direct listing instead of a traditional float, which explains why no banks are listed as underwriters. This is known as a DPO (direct public offering) If successful, it could change how well-known tech companies go public. The European startup will trade on the New York Stock Exchange under ticker “SPOT.”
According to the filing with the SEC, in 2018 the company’s shares recently traded for as high as $132.50 on private markets.
Spotify is the 2nd big tech company that has filed for an IPO recently, the other being Dropbox which filed five days ago. The Stockholm-based service has 71 million paid subscribers (over half of their total subscriber base) and millions more listeners but has yet to turn a profit.
What are your thoughts on the Spotify IPO? Will you be investing?