Spotify Gearing Up for a 2015 IPO, Good News for Power Hungry Wall Street Investors

Swedish streaming music startup Spotify is recruiting a US Financial Reporting Specialist. Bankers and lawyers have inferred it as a sign of groundwork for a 2015 Initial Public Offering. Analysts have said the IPO could value the company at as much as $7 billion to $7 billion.

Rumors branch from Spotify’s job advert posted for an ‘External Reporting Specialist’ on its website as well as LinkedIn. It stated that successful candidate is required to prepare the company for SEC (US Securities and Exchange Commission) filing standards and set up all reports necessary to be SEC Compliant.

Spotify has over 20 million users of which 5 million pay a monthly subscription fee that varies based on the users location.

Spotify has over 20 million users of which 5 million pay a monthly subscription fee that varies based on the users location.

Launched in 2008, Spotify which is based on Stockholm, Sweden provides online streaming content to its users by licensing music from SONY, EMI, Warner Music Group and Universal. The service quickly expanded due to its popularity and now has over 20 million users of which 5 million pay a monthly subscription fee that varies based on the users location.

Last year in November, Spotify raised $250 million in a funding round, making it one of the world’s most richly capitalized startup. Early investors in Spotify include Nordic venture capital firms Northzone and Creandum. Sean Parker’s Founders Fund, Kleiner Perkins, Digital Sky Technologies, Accel Partners and Goldman Sachs joined in later financing rounds. Technology Crossover Ventures led the most recent $250 million funding round, which helped the Swedish music service bolster its U.S. business, which trails services such as Pandora Media, and launch in other countries.

The fundraising move had been interpreted by bankers and analysts as a step into focusing on further expansion so that it could go to the market with a flotation in the coming year.

During corporate filings in 2012 in Luxembourg where Spotify registered, it showed that the company has more than doubled the revenue that year to 435 million Euros ($ 571 million) but had a net loss of 58.7 million Euros.

Competitor Pandora went public in 2011 with shares having nearly tripled in the past year. It reported a higher revenue and profit for the quarter ending in December, but said costs to expand its audience were rising.

Spotify also faces fierce competition from Apple Inc’s iTunes Radio, Sirius Xm, Rdio and a few more smaller players.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

Recent Posts

Monte dei Paschi performance below par in EU banks stress test

Monte dei Paschi performance below par in EU banks stress test

The depletion of capital at each bank under the test’s harshest scenario will be closely scrutinised, and could potentially lead to hostile takeovers
2 days ago
Nokia to launch T20 tablet with 10.36 inch display

Nokia to launch T20 tablet with 10.36 inch display

The Nokia T20 will sport a 10.36-inch display and will have 4 GB RAM along with 64 gigs of native storage.
3 days ago
Ford sees surprise Q2 profit despite chip shortage and manufacturing hassles

Ford sees surprise Q2 profit despite chip shortage and manufacturing hassles

“The business is ‘spring loaded’ for a rebound when semiconductor supplies stabilize and more closely match demand.”
4 days ago
Audi A6 E-tron Production Launch in 2023

Audi A6 E-tron Production Launch in 2023

Audi has confirmed that there will be multiple variants of the etron, including “basic versions optimized for minimum consumption and maximum range.
4 days ago
Royal Dutch Shell buyback lifts investor sentiment

Royal Dutch Shell buyback lifts investor sentiment

Royal Dutch Shell commences share buybacks before the end of this year while reducing its first quarter dividend to 16 cents per share, a 66% cut.
4 days ago
Citizens Financial to acquire Investors Bancorp in $3.5 billion NYC push

Citizens Financial to acquire Investors Bancorp in $3.5 billion NYC push

Citizens Financial Group, Inc. and Investors Bancorp announced today that they have entered into a definitive agreement and plan of merger in a cash-and-stock deal worth $3.5 billi
5 days ago