Spotify makes “confidential’ filing for an IPO this spring

Spotify has filed confidentially for an initial public offering with the US Securities and Exchange Commission and is moving ahead with a direct listing in the first half of the year, a source familiar with the matter said on Wednesday.

If the music-streaming service, with was valued at as much as $19 billion last year, goes ahead with its plans, it would make it the first major company to carry out a direct listing, an unconventional way to pursue an IPO without raising new capital.

It also mainly eliminates the need for a Wall Street bank or broker to underwrite an IPO along with many associated fees and could change the way companies approach selling shares to the public.

The confidential filing was initially reported by news outlet Axios.

Spotify is the biggest global music streaming company and counts Apple and Amazon as its main rivals.

Spotify could not be reached for comment.

Spotify was sued by Wixen Music Publishing last week for allegedly using thousands of songs, including those of Tom Petty, Neil Young and The Doors, without a license and compensation to the music publisher. It was unclear what the lawsuit’s effect would be on its IPO plans.

Wixen, an exclusive licensee of songs such as “Free Fallin’” by Tom Petty, “Light My Fire” by the Doors, “(Girl We Got a) Good Thing” by Weezer and works of singers such as Stevie Nicks, is seeking damages worth at least $1.6 billion along with injunctive relief.

Spotify still intends to proceed with a US direct listing in the first half of 2018, despite the lawsuit, according to a source familiar with the matter. It has filed for the listing confidentially with the SEC, with Goldman Sachs, Morgan Stanley and Allen & Co helping arrange it, the source added.

Source: https://nypost.com/2018/01/03/spotify-makes-confidential-filing-for-an-ipo-this-spring/

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