Spotify Shooting For Fall IPO

Spotify Music Service

In fall of 2014, popular music-streaming service Spotify could be taking itself public. The company has reportedly engaged in informal discussions with a few of the investment banks that are expected to fight for a role in the event of an IPO.

Spotify, which launched in 2008, could begin holding formal meetings as soon as next month in hope of an offering sometime in fall. However, the timeline could change based on a various factors such as unfavorable market conditions.

The company recently acquired music analytics company The Echo Nest, which provided data for online radio stations and music recommendations such as Spotify itself.

Spotify also attained a $200 million line of credit from lenders such as Deuthsche Bank, Goldman Sachs, and Morgan Stanley earlier this month. Both of the moves are said to be keeping Spotify in line for preparing for a public offering.

The credit facilities typically lend large credit lines to promising tech companies that are predicted to have favorable terms in the future. Many of the lenders may take up important roles in the IPO, and few a few may even take the lead on the offering.

Spotify is particularly attractive to investors because the majority of its revenue comes by way of subscriptions and not advertising.



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