Spotify goes public, IPO values company at $23 billion

Spotify has made it official—the streaming giant announced on Wednesday that it is officially going public, reports CNBC. The often controversial music streaming service intends to trade on the New York Stock Exchange (NYSE) under the ticker name “SPOT”. 

Although Spotify’s debut on the NYSE is being called an Initial Public Offering (IPO), but it’s not an initial public offering in a traditional sense. Instead, Spotify is undertaking a rare “direct listing,” which means there’s no fixed number of shares for sale and, as Spotify explains in the filing, the price could rise or fall more dramatically than normal.

The company offered some guidance in its filing based on private share sales — some of which have traded as high as $132.50 on the private market — which value the company at close to $23 billion. According to the CNBC report, the company is targeting a $1 billion IPO. 

In the 10 years of Spotify’s existence, it has proven to be the leader in streaming music services globally, with the company reporting 71 million paying premium subscribers and more than 159 million monthly active listeners as of December 2017. It is available in 61 countries and territories. Its closest competitor, AppleMusic, is far behind at 36 million subscribers.

DJ Marshmello performs onstage at 'Spotify's Best New Artist Party' at Skylight Clarkson on Jan 25, 2018 in New York City. (Photo by Roy Rochlin/Getty Images for Spotify)

According to Spotify's filings, the company generated close to $5 billion in revenue in 2017 but saw its operating loss exceed $460 million. The filing also notes that Spotify has paid more than $9.77 billion to rights holders over the course of its 10-year existence.

The company faces significant challenges to its business model, including risk from fluctuating and unpredictable royalty rates it pays to music labels, publishers, and songwriters. The company is also no stranger to criticism from artists as to how it’s unfair in terms of handing out royalties. Radiohead’s Thom Yorke, The Black Keys’ Patrick Carney, Talking Heads vocalist David Byrne and Taylor Swift have all voiced their concerns against the streaming service with Yorke and Swift retracting their music from Spotify temporarily.

So while some Twitter users were enthusiastic about the news, others remained critical: 

"We set out to reimagine the music industry and to provide a better way for both artists and consumers to benefit from the digital transformation of the music industry,” addressing these issues and envisioning the business model for the future. "Spotify was founded on the belief that music is universal and that streaming is a more robust and seamless access model that benefits both artists and music fans.”

Spotify said that it would list "as soon as practicable after this registration statement is declared effective."

If you have any views or stories that you would like to share with us, drop us an email at

About Author

Suraj Prabhu


Album review: Jack White is at his most playful, experimental best in Boarding House Reach
Liam Payne plays doting dad, shares rare photograph of son on his first birthday
Since when does Camila Cabello not play the guitar? Fans defend singer after she was mocked for fake playing on Ellen
Justin Bieber crashes idol Craig David's Los Angeles performance to show the R&B singer some love
Chrissy Teigen was asked why she didn't take husband John Legend's last name...she will never be asked that again!
John Cena says WWE is open to having transgender wrestlers..."as long as the story's good"
Death Grips announce new album 'Year of the Snitch'
Penelope Cruz lends her gorgeous light to Carpisa's Spring 2018 campaign
UNHCR Ambassador Cate Blanchett says time is running out for Rohingya refugees in Bangladesh as monsoon season begins
Prince for rent: Here are five businessmen that paid Prince Charles a generous amount of money for his royal company


Keith Urban and Nicole Kidman are getting a divorce and it's going to be rough: Reports
Declan Donnelly has finally broken his silence following his best friend Ant McPartlin's arrest
A royal nightmare? Nude pics of Meghan Markle leaked, Kensington Palace calls them fake
Jonah Hill's brother Jordan Feldstein's cause of death has been confirmed
Dwayne Johnson posts emotional tribute to WWE legend Hulk Hogan: 'Suddenly I feel 16 again'