Spotify preparing to launch listing on the US market share
The Swedish music streaming platform, Spotify, on 3 April will be publicly traded for the first following its initially US market debut.
The firm is anticipated to be worth US$20-25bn in a floatation on the New York Stock Exchange.
“Sometimes we succeed, sometimes we stumble. The constant is that we believe we are still early in our journey and we have room to learn and grow,” commented Daniel Ek, CEO of Spotify.
However, unlike how most companies issue new shares, Spotify is not – it will be selling shares held by its private investors.
The company launched 12 years ago, and as of yet has not made a profit – with the floatation anticipated to change that.
“Up until now it was the warm-up lap. When that's done we'll see a bit of a shift in strategy and direction,” remarked analyst at MIDia Research, Mark Mulligan, the BBC reported.
Since 2006, the firm has expanded to having 157mn users across the globe with 71mn people paying a monthly subscription fee.
The platform is almost twice as large as its next biggest competitor, Apple Music.
However, Spotify’s revenues have been rivalled by the costs and fees paid to musicians for the rights to the music.
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