Spotify may bypass IPO and list directly list


November 11, 2014 - File - A debate has taken center stage in the industry thanks to the decision by Taylor Swift to remove her entire catalog from Spotify. Calling streaming outlets like it 'a grand experiment,' Ms. Swift told Yahoo in an interview last week: 'I'm not willing to contribute my life's work to an experiment that I don't feel fairly compensates the writers, producers, artists and creators of this music.' Ms. Swift sold nearly 1.3 million copies of her latest album, '1989,' in its first week on sale, giving a talking point to critics who believe that Spotify, for all its hype, is not necessary for success. Pictured - Feb. 25, 2014 - Berlin, Germany - The logo of the music streaming service Spotify in Berlin. (Credit Image: © Britta Pedersen/DPA/


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Spotify is reportedly considering a direct listing on a stock market instead of taking the usual route of holding an initial public offering.

The move, in which the music streaming company would simply register its shares on a public exchange and let them trade freely, is relatively rare.

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Many technology startups going public have so far avoided it because they have to comply with quarterly reporting rules without bringing in fresh funds.

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Spotify declined to comment.

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The Swedish firm is reportedly aiming for a valuation of more than $10bn (£8bn).

The music service was founded more than a decade ago and now has more than 50 million paying subscribers.

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This week it also signed a new long-term licensing deal with Universal Music Group, the world’s largest record label.

Spotify, which includes TPG and Goldman Sachs among its major investors, has yet to release its 2016 financial results.


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