Spotify Valued At $30 Billion Following Debut On New York Stock Exchange

Spotify Valued At $30 Billion Following Debut On New York Stock Exchange

Spotify Valued At $30 Billion Following Debut On New York Stock Exchange

The New York Stock Exchange celebrated Spotify's stock market debut Tuesday with the wrong flag.

Spotify opted for a rare direct listing rather than a traditional initial public offering, which raised questions around its stock debut. But Spotify is based in Stockholm, Sweden, not Switzerland. Sweden's flag is blue and yellow. But on an operating basis, excluding some financial transaction costs, Spotify lost $465 million, 8% worse than the previous year. Its first day of trading-with relatively few trades-continued the unusual float. In companies that more strictly curtail those deals, it's easier to track the winners and losers in an IPO.

For the big labels, the question of whether - and when - to sell their Spotify equity ties in with a potential risk when it comes to dealing with their artists. However, reports suggest that Apple Music isn't far behind Spotify in the U.S. and is expected to surpass 36 million paid subscribers globally by the summer. According to Swedish online stock broker Nordnet, 14 percent of Swedes are interested in investing in the Spotify share.

He expected more companies to follow Spotify's strategy in the future, taking their time to list on the market.

Spotify has helped change the way much of the world listens to music by popularizing streaming - unlimited, on-demand songs online. Perhaps that's a good starting point for the Spotify share to attract a broad group of investors domestically.


Daniel Ek, Spotify's co-founder and chief executive, added in the Times report that the manner in which they went public reflected the company's self-image as a disrupter in the industry.

Normally, companies ring bells. Becoming a publicly traded company is a major move for a company that, unlike its streaming-based rivals such as Netflix, has never been particularly profitable.

Last month, Spotify announced that it is aiming for 200 million monthly users by the end of this year, with around 96 million paying subscribers.

The company, with more than 71 million subscribers, is not raising any money through the IPO.

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