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Spotify Files for IPO After Losing $1.5 Billion in 2017

posted by mrpg on Thursday March 01 2018, @06:30AM   Printer-friendly
from the the-sounds-of-music dept.

takyon writes:

Spotify has finally filed for an initial public offering:

Spotify, the world's largest music streaming service, has filed for an initial public offering today. The Sweden-based company co-founded by Daniel Ek, who has remained its CEO since its 2006 inception, and Martin Lorentzon has more than 71 million paying users as of December 2017. The company also enjoys an overall user base that includes ad-supported free listeners of 159 million, far outpacing the competition from Apple, Google, Tidal, and others. Spotify will trade on the New York Stock Exchange under the symbol "SPOT."

Spotify will be offering a direct listing, meaning that its shares can be traded on the open market sooner than with a more conventional IPO, as Spotify doesn't intend to raise a large amount of capital with its IPO. According to CNBC, the price of Spotify shares traded on private markets indicate the company could be worth as much as $23 billion.

The filing gives us one of our best looks yet at Spotify's finances, with the company posting revenue last year of €4,090 million (nearly $5 billion) and a net loss of -€1,235 million (or ~$1.5 billion) for the same period.

Also at TechCrunch.

Original Submission

 
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  • (Score: 1, Insightful) by Anonymous Coward on Thursday March 01 2018, @09:41AM (1 child)

    by Anonymous Coward on Thursday March 01 2018, @09:41AM (#645694)
    Spotify are losing money so they aren't earning their keep ;).
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  • (Score: 2) by TGV on Friday March 02 2018, @07:27AM

    by TGV (2838) on Friday March 02 2018, @07:27AM (#646248)

    Spotify’s Chief Product Officer had the highest reported income. This year, Gustav Söderström reported 67 million kr ($7.9 million). Co-founder and former Chairman of the Board Martin Lorenzton received 44.1 million kr ($5.2 million). Spotify’s Chief Premium Business Officer Alex Noström reported an income of 42.1 million kr ($5 million). CEO Daniel Ek received 8 million kr ($4.5 million). Oskar Stål, Vice President of Consumer Engagement, reported 34 millon kr ($4 million).

    Spotify’s global HR manager, Katarina Berg, and Tax Director, Jens Svolgaard, reported the most modest incomes. Berg received 6.7 million kr ($789,260) while Svolgaard reported 3.6 million kr ($424,080).