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.