Seeking Alpha

Report: Spotify eying fall IPO

  • Quartz reports Spotify has held informal talks with banks about an IPO, and could start holding formal meetings next month "in anticipation of an offering in autumn."
  • Bloomberg reported three weeks ago Spotify is working with Goldman on landing a credit facility, the type of move that's often a precursor to an IPO. Last year, the streaming music service raised funding at a reported $4B+ valuation.
  • More recently, Apple has been reported to be holding "exploratory talks" with music labels about offering a rival service. Much like Pandora in the Web radio space, Spotify has been able to hold a number of rival subscription services at bay.
Comments (2)
  • Breezy Breeze
    , contributor
    Comments (40) | Send Message
     
    *rubs hands* muahahaa
    27 Mar, 02:54 PM Reply Like
  • Tales From The Future
    , contributor
    Comments (5050) | Send Message
     
    Both P and Spotify are bleeding money or are at break-even at best (see recent quarters for P). I wonder how this business model will ever be profitable.

     

    Big competitors like MSFT, GOOG, AMZN and AAPL can cross-subsidize their streaming offerings for a long time and squeeze out these pure plays.
    28 Mar, 01:29 AM Reply Like
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