There has been much debate over a Spotify IPO. The company has long been rumored to be willing to follow rival Pandora, which is already listed as a public company. Spotify hasn’t made an official comments about a possible IPO though it may be talking with banks who may subsequently become underwriters should it go ahead with the plan. Quartz reports, citing people with knowledge of the plans, that Spotify is currently discussing a possible IPO through informal talks with major banks. Formal talks to get them onboard as underwrites might begin next month.
Since its a private company, Spotify doesn’t have to reveal any revenue figures. The company has said from time to time that its growing steadily, the numbers would only come to light once it discloses the figures as part of the IPO filing. Its main revenue stream is subscriptions. Spotify offers music streaming and subscription worldwide, including the U.S.
There have been indications that Spotify might be considering an IPO. The biggest being its $200 million line of credit extended by major banks which may possibly become the underwriters for its IPO. Quite a few internet companies have hit Wall Street over the last few years and the results have been mixed.
King, the makers of Candy Crush Saga, the most recent company to go through with an IPO. Unfortunately, its shares stumbled shortly after they went public yesterday.
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