Spotify’s Bold Move: Direct Listing 2018—No Wall Street Middle‑Man, Just a Big Heads‑Up
In a plot twist straight out of a startup‑saga, the music‑streaming giant Spotify is gearing up for a direct listing in the first half of 2018. This means no hefty underwriting fees, no loopy bankers in fancy suits, and a chance for early backers to cash out. Yes, it’s as thrilling as a fresh playlist drop.
What’s a Direct Listing Anyway?
- Unlike a classic IPO, a direct listing lets a company go public without raising new capital.
- It discards the usual Wall Street brokerage route, slash a heap of fees.
- Think of it as a pre‑tuned Spotify track you can play straight from the station—no extra instrumentation needed.
The Big Picture
Spotify, which was on a $19 billion valuation run last year, would become the first major player to try this new dance on the trading floor. If all goes well, it’s a format that might reshape how other firms sell their shares to the public.
Why the Timing Matters
Ever since the SEC opened the door for confidential draft filings—with no revenue threshold—companies can fine‑tune their IPO plans privately. Spotify’s latest confidential filing, initially leaked by Axios, keeps details tight until the big reveal.
Rivals and Rumors
Apple and Amazon are the obvious competitors, but Reuters had already speculated Spotify would file in late 2017 and aim for the New York Stock Exchange early this year. Oddly enough, Spotify remains silent on any official comments. Pixelated silence, anyone?
Legal Hurdles
Just weeks ago, Wixen Music Publishing Inc filed a lawsuit demanding at least $1.6 billion in damages, claiming Spotify jammed thousands of tracks without proper licenses. But fear not—lawyers suggest this won’t derail the listing.
- Luke DeMarte, a copyright lawyer, believes Wixen will settle for a fraction of the doliant and that the case is unlikely to go to trial.
- He notes, “It’s not in Wixen’s interest to stop Spotify; the streaming game is too big.”
What We Know About Spotify’s Numbers
- Active users: 140 million and growing.
- Library: 30 million tracks plus streaming.
- Paid subscribers: 60 million, nearly double the competition.
With this direct listing, the company plans to sidestep the costly middleman, lightening the load on investors and critics alike—all while continuing to rock the music world.
Stay tuned for more moves from Spotify—because their next step might just rewrite the way we think about brands going public.
