Spotify IPO: Music-streaming startup hopes stock offering is a smash hit

New Technology Is Going To Make You Even Less Patient When Your Spotify Won’t Load Cody Lewis

Spotify, which was founded a decade ago, is the world's largest music streaming service and has more than 71 million subscribers.

With shares trading at their current level, Spotify has an enterprise value - which takes into account cash and debt on the balance sheet - of about five times its 2017 revenue of $5 billion. Spotify has a unique case due to its stock structure. It's a less expensive alternative to an IPO where the business sells shares directly to the public without any intermediaries, but it also means drawbacks like no deal support from the bankers.

The Swedish company began trading at an opening price of $165.90 per share, almost 26 per cent above the reference price, before slipping back a little. Launched in 2008, the company claims to have almost 160 million monthly active users, across dozens of countries.

Spotify is focused on building its subscriber base. It's using a "direct listing" on the New York Stock Exchange that will allow the company's early investors and employees to sell as many shares as they want whenever they want.

Where will the Spotify stock symbol open at? "Even though Spotify's scale is about twice that of Apple Music, Apple has a huge ecosystem of products to market to".

Israeli PM suspends deportation plan for African migrants
After meeting with residents yesterday, Netanyahu said he had weighed the pros and cons, and he "decided to cancel the agreement". He added: "We do not have a contract, any understanding, formal or informal, with Israel for them to dump their refugees here".

Tyson Fury dismisses Joshua-Parker fight as 'joke'
As the home fighter and the headline name on the card, Joshua is set to pocket the majority of the fight purse. But Wilder did cause controversy over the weekend with a vile remark about wanting "a body" on his record.

Widow of the Pulse nightclub shooter found not guilty
Salman was indicted a year ago on charges of aiding her husband in planning the attack, and pleaded not guilty to the charges. They say it was coerced and she signed it because she was exhausted and feared losing her young son.

"One of the things that is driving a lot of the uncertainty, this range of valuations, is that the company is highly unprofitable, has a lot of major competitors and has few direct public peers", Matthew Kennedy, an analyst at IPO research provider Renaissance Capital, told CBS Moneywatch. Instead of paying more than $65 million in fees to Wall Street investment banks, Spotify will likely pay half as much, market analysts said.

The company is going public through a direct listing on the NYSE, skirting the initial public offering (IPO) model that most companies pursue.

Ek said his company made a decision to skip the IPO phase because he wasn't interested in "the pomp and circumstance". "Spotify has been the driving force in nothing less than a turnaround in the United States recorded music industry". Instead, it is selling shares now help by its private investors and although this may save them some money, it ultimately makes the entire process volatile. And for its IPO, it opted for an unconventional "direct listing", bypassing Wall Street firms. Spotify subscriptions, meanwhile, are growing by an average of 2 percent per month.

"While this is obviously a big day and I'm very proud of my employees, I really just feel like we're in the early days, not celebrating the end days as so many other companies are doing", Ek said.

"In normal IPOs, the underwriters stabilize the price - they put a floor under the price below which the stock price won't fall, because the underwriters will buy it at that price".

Related news:

Hot News

isis-killer-beheading-video-story-top Liverpool forward Mohamed Salah's surprise prank sends children into euphoria
Apr 03, 2018 - 04:50
And Klopp thinks the defensive work of Salah's co-stars has helped him succeed during his second spell in England. It's about tactics but there will be fire, that's cool, it's at Anfield, so a good atmosphere to watch".

isis-killer-beheading-video-story-top Warriors' McCaw released from hospital after scary fall
Apr 03, 2018 - 04:48
On the other hand, Mike Harmon thought the play was absolutely ridiculous and that Carter should be suspended. "It's terrifying. Immediately after the incident, Carter, who was assessed a flagrant foul, was seen grimacing in sympathy for McCaw.

isis-killer-beheading-video-story-top Trump Urges Congress to Use 'Nuclear Option' to Pass Immigration Reform
Apr 03, 2018 - 04:47
He also claimed that people are flowing over the border "trying to take advantage of DACA ". "They had a great chance". Trump included a pathway to citizenship for Dreamers in his "Four Pillars" plan for immigration reform.

isis-killer-beheading-video-story-top 'Deeply moved': Kim watches S. Korea pop stars in concert
Apr 03, 2018 - 04:45
He was seen in another directly addressing members of Red Velvet, which commands more than 4.6 million followers on Instagram. How North Koreans would react to Red Velvet was particularly the focus of keen media attention in South Korea.

isis-killer-beheading-video-story-top Russian Federation says rebels are leaving Syria's Douma
Apr 03, 2018 - 04:45
It was the first organized evacuation of fighters from Douma, which has held out against government forces through 7 years of war. Douma has been besieged by government forces since 2013.

isis-killer-beheading-video-story-top President Ramaphosa Remembers Winnie Mandela As 'Voice Of Defiance'
Apr 03, 2018 - 04:44
Winnie Madikizela-Mandela died peacefully on Monday at the age of 81 after protracted illness, a family spokesman said. The family said it will release details of her memorial and funeral services when they are finalized.

isis-killer-beheading-video-story-top Manchester United vs Swansea City Match Analysis
Apr 02, 2018 - 11:27
Lukaku has made 45 appearances for United since his move from Everton last summer, scoring 26 goals and registering eight assists. Manchester United scored a comfortable 2-0 win, but the Spaniard made his presence felt when his team required him the most.

isis-killer-beheading-video-story-top The Second Blue Moon from this March is Associated with the Easter
Apr 02, 2018 - 11:25
Firstly, this weekend's celestial event is the last chance for sky watchers to witness a Blue Moon for the next couple of years. For those who wanted to see an aqua-hued orb, sorry but the term " Blue Moon " has nothing to do with the color.

isis-killer-beheading-video-story-top Lagosians Blast Ambode Over Public Holiday Declared for Buhari's Visit
Apr 02, 2018 - 11:22
President Muhammadu Buhari has reportedly given an order that all blocked roads in Lagos be opened, until he is close. The Terminal is one of our flagship transport infrastructure under the State Bus Reform Initiative.

isis-killer-beheading-video-story-top Russian Federation tests new intercontinental ballistic missile
Apr 02, 2018 - 11:08
The Sarmat is a heavy ICBM meant to replace Russia's aging, Soviet-era missiles, which form the basis of its nuclear deterrent. Russia's defense ministry tweeted video of the launch and said Sarmat will "replace the Soviet-era #Voevoda".

isis-killer-beheading-video-story-top This is what happens when you mess with David Hogg
Apr 01, 2018 - 01:54
Supporters of Ingraham took to social media to say they would, in turn, now boycott companies that canceled their ad buys. Ingraham on her show Friday night described the vacation as a pre-planned break with her children for the Easter holiday.

isis-killer-beheading-video-story-top Kentucky police: Suspect in death probe shot behind school
Apr 01, 2018 - 01:41
According to local news reports , the suspect was dressed as a police officer and pretending to be in law enforcement. The suspect in the shooting death of an off-duty police officer has been shot and killed by authorities in Tennessee.

isis-killer-beheading-video-story-top 'Roseanne' Renewed for Another Season After Premiere Episode Garners Record Ratings
Apr 01, 2018 - 00:59
After more than 23 million people tuned in to watch the Conner family return to TV, ABC renewed the show for another season. "We're thrilled that America has welcomed the Conner family back into their homes", ABC president Channing Dungey .

isis-killer-beheading-video-story-top Scott Walker Abandons Fight Against Special Elections
Apr 01, 2018 - 00:56
Scott Walker's scramble to avoid holding special elections for two open seats Wisconsin's state legislature has been thwarted. Fitzgerald said people would still have representation since Assembly and Senate districts overlap.

isis-killer-beheading-video-story-top Apple CEO Tim Cook Criticizes Facebook's Approach to Privacy
Apr 01, 2018 - 00:49
Cook's comments, reported by Recode , were part of a taped interview for MSNBC's Revolution , which will air Friday, April 6. Since, Zuckerberg has been on an apology tour, and is expected to testify before Congress regarding the scandal.