The Other Reason Spotify's Listing Is So Unprecedented
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).
Stephen Kates, Financial Analyst at Bankrate, joins to discuss the Fed’s 25-basis-point rate cut, inflation risks, and what it all means for consumers and marke
Big tech earnings take center stage as investors digest results from Alphabet, Meta, Microsoft, Amazon, and Apple, with insights from Gil Luria of D.A. Davidson
Disney content has gone dark on YouTube TV, leaving subscribers of the Google-owned live streaming platform without access to major networks like ESPN and ABC. That’s because the companies have failed to reach a new licensing deal to keep Disney channels on YouTube TV. Depending on how long it lasts, the dispute could particularly impact coverage of U.S. college football matchups over the weekend — on top of other news and entertainment disruptions that have already arrived. In the meantime, YouTube TV subscribers who want to watch Disney channels could have little choice other than turning to the company’s own platforms, which come with their own price tags.
President Donald Trump said he has decided to lower his combined tariff rates on imports of Chinese goods to 47% after talks with Chinese leader Xi Jinping on curbing fentanyl trafficking.
Universal Music Group and AI platform Udio have settled a copyright lawsuit and will collaborate on a new music creation and streaming platform. The companies announced on Wednesday that they reached a compensatory legal settlement and new licensing agreements. These agreements aim to provide more revenue opportunities for Universal's artists and songwriters. The rise of AI song generation tools like Udio has disrupted the music streaming industry, leading to accusations from record labels. This deal marks the first since Universal and others sued Udio and Suno last year. Financial terms of the settlement weren't disclosed.
