Spotify plotting direct listing to shirk typical IPO costs
Spotify has apparently filed documents for an initial public offering with the Securities and Exchange Commission. Sources to Axios report that the music streaming company made the commitment in the last two weeks and is targeting a launch in the first quarter.
It’s believed that with a direct listing with an exchange as opposed to a typical announcement, the Swedish entity will miss out on many banks’ fees including for underwriting the IPO. The company will also not raise new capital for valuation. Reuters reports that the filing will also allow principal investors to check out of the company.
The company is not commenting on the news.
It is not clear how the recent lawsuit filed by Wixen Music Publishing will affect any risks Spotify needs to report to the SEC.