Will Spotify's IPO be a success? We should find out in a few weeks.
The music transmission service plans to launch its initial public offering on April 3, Daniel Ek, general manager of the music transmission service, said on Thursday during the inaugural "Investor's Day". The company plans to launch an additional guide for investors on March 26, according to Variety, who attended the long presentation.
A spokesperson for Spotify subsequently confirmed the IPO date.
Spotify is twice the size of Apple Music, its closest competitor to the music market in real time, the startup based in Sweden said last month in a regulatory filing for its IPO. Spotify commands around 42 percent of the market, with 71 million paying members and 159 million listeners using the service at least once a month, the company said.
The success of Spotify underscores the cultural change in the way we play and pay for music. Instead of buying music directly, as we did in the age of CDs and digital downloads, people pay increasingly higher rates for songs with unlimited access.
Spotify will trade on the New York Stock Exchange with the SPOT symbol, trading shares worth up to $ 1 billion. The startup is taking the atypical route of a direct quote, offering new shares to operate in the open market without the banks subscribing the offer.
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