×
You will be redirected back to your article in seconds

Spotify Is Looking to Go Public Before Year’s End (Report)

Spotify has plans to go public before the end of the year, according to a report from the Wall Street Journal. And in a twist, the music streaming service may not go down the traditional IPO route. Instead, Spotify is considering a direct listing without raising any new capital.

This would mean that Spotify may not have to deal with the drama of a traditional IPO day, and it could save of fees it would otherwise have to pay to underwriters. Spotify could then always go back to the markets at a later point to issue new shares if and when it needed to raise new capital.

Spotify has been on a path to a public offering ever since it borrowed $1 billion in convertible debt a year ago. The terms of that loan reportedly stipulate that the interest rate raises by 1 percent every six months until the company goes public, making a delayed public offering a lot more expensive. Spotify might have to renegotiate the terms of the debt offering to make a direct listing work, the Journal reported Thursday.

Going public isn’t without risk for Spotify. The company is the industry leader in the streaming music space with more than 50 million paying subscribers. However, that leadership position comes at a huge cost, with Spotify forking over most of its revenue to music rights holders, with an uncertain path to profitability.

Adding to this uncertainty was the fact that Spotify had been operating without long-term licensing agreements with the three major labels for over a year. Earlier this week, the company announced a new deal with the Universal Music Group, paving the way for similar agreements with Sony Music and the Warner Music Group.

Popular on Variety

More Music

  • Midland Offers a Clever Take on

    Album Review: Midland's 'Let It Roll'

    At the end of 2019, if you tally up all the steel guitar playing that appeared on a mainstream country album released by a major label this year, chances are that at least 80 percent of it will have occurred solely on Midland’s new album. That’s not the only reason to buy “Let It Roll,” [...]

  • Taylor Swift: Borchetta 'Conveniently Forgets' Scooter

    Taylor Swift: Scott Borchetta 'Has 300 Million Reasons to Forget' Scooter Braun Warnings

    In an interview with “CBS Sunday Morning,” Taylor Swift charged that the president of her former label, Big Machine’s Scott Borchetta, has a selective memory when it came to recalling just how she’s long felt about Scooter Braun, who acquired her catalog when his Ithaca Holdings purchased the record company. “I knew he would sell [...]

  • Harvey Weinstein, Katie Holmes, Taylor Swift'The

    Taylor Swift Downplays Association With Harvey Weinstein

    Taylor Swift’s association with disgraced movie mogul Harvey Weinstein was among the topics the singer addressed in a revealing new interview with The Guardian. Weinstein held producer credits for the movies “One Chance” and “The Giver,” both of which featured Swift — in the former, a song, and in the latter, a supporting role. She [...]

  • Tanya Tucker Finds Fresh Footing With

    Album Review: Tanya Tucker's 'While I'm Livin''

    Before there was a name and a place for it, an “outlaw” was what Tanya Tucker was in the years following her gentle country smash with the gospel lilt, “Delta Dawn,” in 1972. A hellraiser and heartbreaker (Merle Haggard and Glen Campbell were just a few of her noted lovers), Tucker made as many headlines [...]

  • A pair of handcuffs

    D.C. Concert Biz Heavyweight Seth Hurwitz Arrested for Solicitation

    Seth Hurwitz, a highly regarded figure in the Washington, D.C. concert scene, was arrested Wednesday on solicitation of prostitution after a massage therapist who felt harassed by Hurwitz helped police set up a bust. Hurwitz, owner of the 9:30 Club and Anthem venues and chairman of the Merriweather Post Pavilion, was released on $5,000 bond [...]

  • Major Lazer Fortnite

    Major Lazer Remixes Fortnite Soundtrack and Releases New In-Game Skins

    Major Lazer, one of Diplo’s many creative outlets, has teamed up with Fortnite to offer fans access to a unique character skin and new remixes of the game’s Default Dance track. The Lazerism set includes the Major Lazer Outfit, Lazer Wings, Lazer Aze, the Lazer Blast emote and the EDM group’s remix of the “Default [...]

More From Our Brands

Access exclusive content