Spotify was founded in Sweden, partially by Daniel Ek, a now-far-away 12 years ago, in 2006. Recently, executives and the board of directors of the world’s largest streaming hub for music said Spotify would soon go public with its stock.
Rather than listing shares of the company on lesser-known stock exchanges and financial markets with significantly lower interest and trading volume than the world-renowned New York Stock Exchange, Spotify will “do it big” by heading directly to the NYSE.
Most initial public offerings, in which companies slated to go public, feature all stock shares being underwritten by large investment banks and other financial institutions. Because the executives at Spotify feel so favorably about the future performance and current success of the company, Spotify will skip the aforementioned step and go directly to the New York Stock Exchange.
Spotify Is Taking This Action To Help Its Early Investors Out
Spotify, just like virtually every business that’s reached multi-billion-dollar valuations on the face of planet Earth, has received financing from large corporations and individual investors, alike, on the road to success it’s currently on.
The company, of course, just like every other private entity breaking into the world of selling public stock shares, wants to be able to seek investments in the form of publicly-traded shares, though its upcoming action will allow previous investors to take an exit from the company’s shareholding ranks, allowing them to cash in on all the money they’ve lent to Spotify.
According to Mr. Mark Mulligan, a music industry financial analyst based in the United Kingdom, “[The upcoming move is} about a company that is letting its investors get their returns so it can move on to the next stage of its career.”
It’s hard to think that Spotify will get bigger – even though it certainly will, based on everything ever known about the shift towards digital and music’s going away from CDs, cassettes, radio, and the like – seeing as it’s currently operating in 61 countries, being paid monthly by 71 million subscribers, and hosting a whopping 159 million monthly users.
Here’s How Spotify Valued Its Upcoming Public Shares
In 2017, Spotify sold private shares for anywhere between $37.50 and $125. In 2018 alone, shares have sold for a minimum of $132. With these prices, the true upcoming valuation of Sweden-based Spotify could range anywhere from a low of $6.3 billion, all the way up to $23 billion.