Will a Spotify IPO Live Up to Its $8 Billion Valuation?

Spotify Chief Executive Daniel Ek has persuaded more people to pay for music online than anyone besides Steve Jobs and Jeff Bezos. On Wall Street, his business may be a tougher sell.

Spotify aims to go public in the second half of next year, say five people familiar with the plan.

In March, shortly before its 10th birthday, the Swedish company raised $1 billion in convertible debt from investors who valued the company at more than $8 billion. It’s also lost money in each of those 10 years.

Companies awash in red ink can make it in public markets—Amazon.com, Tesla—but it’s hard to hang a business on music streaming. “This is just a tough sector, and that is skepticism Spotify will have to overcome,” says Mark Mahaney, an analyst with RBC Capital Markets.

Source: Bloomberg

Respond to Will a Spotify IPO Live Up to Its $8 Billion Valuation?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s