10/12/2023 0 Comments Spotify ipo price![]() It restated user metrics two weeks ago, eliminating 2 million users from its MAU total to account for fraudulent streams from freeloaders using hacked apps.Ĭhinese internet giant Tencent owns 9.1% of Spotify’s outstanding shares, while Spotify holds 9% equity in Tencent Music Entertainment. As of the end of 2017, it tallied 157 million monthly active users and 71 million premium subscribers. Spotify operates in 65 countries and territories. Ek directly owned 15.6 million shares (8.8% of outstanding shares) and Lorentzon held 21.7 million (12.2%). As of March 21, Ek controlled 37.0% of the Spotify’s total voting power and Lorentzon controlled 43.5%. ![]() A valuation of nearly $40 billion for Spotify is “highly reasonable,” he added.Įven after the IPO, Ek and co-founder Martin Lorentzon will very likely maintain majority control of Spotify even if they sell a portion of their holdings. “Spotify is the global leader and has sustainable advantages,” RBC Capital Markets’ Mark Mahaney wrote in a March 29 note, initiating coverage with an “outperform” rating and a $220-per-share price target. Spotify has fans on Wall Street based on its potential growth. Its net loss for 2017 more than doubled, to $1.5 billion (1.2 billion euros). “So while tomorrow puts us on a bigger stage, it doesn’t change who we are, what we are about, or how we operate.”įor 2017, the company generated around $5 billion in revenue in 2017 (4.1 billion euros), versus $3.6 billion in 2016. “Spotify is not raising capital, and our shareholders and employees have been free to buy and sell our stock for years,” Ek wrote. Spotify CEO Daniel Ek, in a blog post Monday, said he expects the company to experience “ups and downs as we continue to innovate and establish new capabilities.” He tried to convey a business-as-usual air, saying about the IPO that “our focus isn’t on the initial splash” and that he hoped Spotify’s public-market debut does not become the most important day in its history. 1 global music-streaming provider with an estimated 42% worldwide market share in 2016. ![]() But at least out of the gate, investors displayed enthusiasm to own a piece of the Sweden-based firm. About 29.8 million shares total were traded in just over three hours on Tuesday. The NYSE had set a “reference price” Monday of $132 per share as a placeholder prior to the initial public offering.įounded in 2006, Spotify has never been profitable and its rivals include Silicon Valley heavyweights Apple, Amazon and Google. In less than 15 minutes, more than 10 million Spotify shares had been traded. With the IPO, Spotify shareholders are eligible to sell up to 55.7 million regular shares, representing 31% of outstanding shares. Rather, it’s designed to let existing investors cash out their holdings those include Sony Music Entertainment, which owns 5.7% of outstanding shares, and Universal Music Group and Warner Music Group, which each hold around 4%. Spotify isn’t raising any capital with the IPO. The music streamer’s unconventional direct-listing IPO - which bypassed Wall Street banking firms as underwriters - is expected to be one of the biggest tech offerings of the year.
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