Spotify Files to Go Public on New York Stock Exchange

The music streaming giant will trade on the New York Stock Exchange under the symbol “SPOT.”

DANIEL EK SPOTIFY PUBLIC NYSE
Akio Kon/Bloomberg

After nearly a 12 year streak of remaining privately owned, Spotify has now filed for an initial public offering. Daniel Ek and Martin Lorentzon, the Swedish-based company’s CEO and Chairman, have amassed over 71 million paying users as of December 2017. When paired with its 88 million free listeners, it is the world’s largest music streaming service.

The filing gives us a background of Spotify’s finances, with the company posting revenue last year of €4,090 million (nearly $5 billion) and a net loss of -€1,235 million (or ~$1.5 billion) for the same period.

Despite its success and potential as the industry leader in music streaming, Spotify has struggled to find a profitable business model and has been operating on thin margins from ad revenue and subscriptions. Most of its expenses come from paying licensing fees to record labels, which they will be forced to negotiate to continue supporting its massive music catalog.

Based off its traded shares on private markets, Spotify could reportedly be worth as much as $23 billion.