All You Need To Know About Spotify Going Public

All You Need To Know About Spotify Going Public

"In those times we needed to hear songs that were loving and uplifting, about the reality of intimacy, longing, romantic risk and reward", she continues.

According to Yahoo Finance, "Shares of the company traded hands for as much as $131 per share during the first quarter, and the Financial Times reported Monday that will likely take until midday on Tuesday for the stock to open for trading". "It's not manipulated or set by any puts and takes by banks or institutional investors", said Chi-Hua Chien, an early investor in Spotify who is now at San Mateo, California-based venture capital firm Goodwater Capital.

CEO Daniel Ek, who co-founded the service, is from Stockholm. With the company having been valued at $19 billion this past December, it was widely assumed that Spotify would be valued in the $22 billion to $25 billion upon going public.

Despite the company's impressive growth, not to mention its focus on diversifying its revenue streams, the company faces a serious challenge from Apple Music, Apple's own streaming service.

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In fact, it has lost more than €2.4 billion (£2.1bn) over that period. In its filing to go public, Spotify noted that it had roughly twice the number of paying subscribers as its next closest rival, Apple (AAPL).

Google and Amazon are also attempting to muscle in on Spotify's business. The business had about $700 million invested in Spotify before it went public through a direct listing, according to a person with knowledge of the matter.

While Ek eschews New York Stock Exchange rituals such as opening bell-ringing and trading floor interviews to tout the stock, the front of the 115-year-old Greek Revival exchange building has been draped in a vast green-and-black Spotify banner.

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

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"Nothing ever happens in a straight line - the past ten years have certainly taught me that".

The Swedish music-streaming company has made headlines over its decision to do a direct listing of its stock, meaning that it did not enlist the help of bankers for the traditional underwriting process.

Morris on Tuesday formally initiated coverage on Spotify's stock with a "buy" rating and a price target of $175.

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