Spotify is ready to prove its weight in gold.
After filing paperwork with the Security and Exchanges Commission (SEC) today, streaming service Spotify has announced plans to offer shares of up to $1 billion. According to Stereo Gum, it will trade under the name “SPOT” at the New York Stock Exchange.
In the paperwork that was filed, it was revealed that Spotify’s competitor Apple Music can barely even be considered as such. Apple has a large number of users, sure, but Spotify has a user base nearly that of its rival streamer.
The service had 159 active monthly subscribers as well as 71 million paid subscribers in 2017 alone. It also earned nearly double its 2016 revenue with nearly $5 billion in 2017. These are numbers that Apple simply cannot come close to.
Of their universal appeal to both fans and artists, the prospectus summary overview stated,
“Our mission is to unlock the potential of human creativity by giving a million creative artists the opportunity to live off their art and billions of fans the opportunity to enjoy and be inspired by these creators.”
Spotify sees itself as an integral part of the music industry as they have a high concentration of music from major labels including “music from Universal Music Group, Sony Music Entertainment, Warner Music Group and Merlin that made up approximately 87 percent of streams in 2017.”
It’s not a surprise that a streaming service has the clout to make it all the way to Wall Street. After all, Netflix is there as well as Hulu, so it’s only fitting that a music streamer has found its way there. Especially one that has as impressive of a resume as Spotify does.
While the papers have been filed, it will take time to process, but Spotify will list the stock “as soon as practicable after this registration statement is declared effective.”
Stay tuned to Salute for more info.