Published
Wed, Jan 3, 2018, 19:07
- The move is the latest step towards the Swedish streaming giant, which is valued at $15 billion, going public.
Spotify has filed documents to go public, according to a report from Axios later confirmed by Bloomberg.
Reports say that the Swedish streaming platform filed for its listing on the New York Stock Exchange between Christmas Day and New Year's Day, paving the way for a public offering in the coming months. The direct listing technique, instead of a traditional IPO (initial public offering), will allow Spotify to go public, make shares available immediately and allow demand to set the price, rather than raising money through investment bankers prior to the offering. Bloomberg notes that the streaming service's 60 million paying customers should provide enough cash for the official offering. Spotify has declined to comment on the matter.
The Swedish company is currently valued at around $15 billion, and is the biggest of the music streaming platforms. It has been preparing for a public offering since last year, when it hired a number of investment banks to assess its options in addition to signing longer-term deals with the three major label companies.
In other news, Spotify was hit with a $1.6 billion lawsuit, according to Variety. The suit comes from Wixen Music Publishing, which represents artists like Tom Petty and Neil Young, and alleges that Spotify is streaming music and paying royalties only for the recordings and not for publishing.