Spotify, the world’s largest music streaming service, could make a lot of waves when its shares hit the market.
That’s according to Axios Business Editor Dan Primack, who says the offering could be “something like we’ve never seen before.”
In an interview with Cheddar, he pointed out that the vast majority of Spotify’s investors are not subject to lock-up periods, meaning they “can, in theory, sell on day one.” That could “significantly increase the volatility” of the shares.
Second is Spotify’s decision to go the “direct listing” route. The company will eschew traditional underwriters, with investment banks Morgan Stanley, Goldman Sachs, and Allen & Co. only playing limited roles as advisors.
Primack says this is not something just any company can pull off.
“Everyone knows what Spotify is. It’s not just a consumer brand -- it is a very, very high-profile consumer brand.” said Primack.
Spotify’s filing Wednesday confirmed what everyone already knew -- it is a market leader in the streaming space. At the end of last year it had 159 million monthly active users and 71 million paying subscribers. That is miles ahead of Apple’s 36 million, though a recent [report](https://www.wsj.com/articles/apple-music-on-track-to-overtake-spotify-in-u-s-subscribers-1517745720) suggests the iPhone maker is gaining ground.
Spotify also said it brought in more than $5 billion in revenue revenue last year, up 39 percent from the year before. But it’s yet to turn a profit and posted a loss of around $1.5 billion.
The company could list before the end of the month.
For the full interview, [click here](https://cheddar.com/videos/spotifys-unusual-public-listing-could-change-the-ipo-game).
Swingers mini golf co-founder and co-CEO Matt Grech-Smith explains the appeal of putt-putt for adults and the company's expansion to Las Vegas.
From moving finances online to the new ways we'll be getting cash, Ray Hatch, the Vice President of Enterprise Solutions Vertical Markets at Comcast Business explains how the banking industry is getting ready for the future.
Swingers mini golf chain co-founder and co-CEO Matt Grech-Smith explains how his company is finding success by creating a more adult version of a longtime family favorite.
Shopping expert Trae Bodge shares tips for saving money while back-to-school shopping for college students.
The managers of the Panama Canal said they expect income from the waterway to drop after authorities were forced to limit the number of ships passing through each to 32 due to a lack of rainfall.
Nissan is recalling more than 236,000 small cars in the U.S. because the tie rods in front suspension can bend and break, possibly causing drivers to lose steering control.
Canadian Prime Minister Justin Trudeau accused Facebook on Monday of putting profits over people’s safety during the emergencies created by Canada’s record wildfire season.
Neil Wertheimer, deputy editor for the AARP Bulletin and The Magazine, talks about some of the highlights from this year's list of 99 Great Ways to Save.
Just five years ago, a price-conscious auto shopper in the United States could choose from among a dozen new small cars selling for under $20,000. Now, there’s just one: The Mitsubishi Mirage.
Inflation is easing, but prices for the items you need are still high. Marty Cantor explains that while relief will eventually arrive, he says we should brace ourselves for things to get worse before they get better.
