Tuesday, 3 April 2018

Spotify braces for $20bn US share market listing



Shares in the music streaming firm Spotify will be publicly traded for the first time later on Tuesday when the firm debuts on the New York market.

 
Spotify's listing, which could value it at $20bn (£14bn), is unconventional: it is not issuing any new shares.


Instead, shares held by the firm's private investors will be sold.


Analysts said the nature of the listing could lead to trading volatility, although in informal trading on Tuesday, the share price held up.


The flotation marks a turning point for the firm, that, after 12 years, has not yet made a profit.
In an open letter on Monday, chief executive Daniel Ek said: "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."


Spotify, once an small upstart Swedish music platform, has grown rapidly in recent years, adding millions of users to its free-to-use ad-funded service and converting many of them to its more lucrative subscription service.


It is now the global leader among music streaming companies, boasting 71 million paying customers, twice as many as runner-up Apple.


So far costs and fees to recording companies for the rights to play their music, have exceeded Spotify's revenues, although that gap is narrowing.




BBC      News.