Spotify's current valuation is now above $20bn, according to some recent private share trades between investors in the company. The IPO, meanwhile, is scheduled for April 3, Spotify said in the investor presentation.
Equal Access - Bankers won't get preferred access. "No underwriting syndicate, no limited float, no IPO allocations, no preferential treatment".
Michael Krause, managing director for Europe, Middle East and Africa at Spotify, spoke about the company's intention to expand into other parts of Africa, but did not give further details about the markets involved. "We think the wisdom of crowds trumps expert intervention".
Spotify remains unprofitable, but will be issuing financial projections on 26 March, according to the Financial Times. It also announced today that there will be no lock-up period, so employees can start selling their shares immediately.More news: Teaser released for 'Shadow of the Tomb Raider'
The long presentation - which actually took a 10-minute break after the first hour - featured cofounder and CEO Daniel Ek along with senior executives Paul Vogel, Seth Farbman and Gustav Sodorstrom dropping some key data points amid long speeches and artist-heavy videos plugging the company, its services and its future.
McCarthy said the company's free service is a necessary expense to gain new subscription users.
72% of Spotify users are under the age of 34, while 43% are under the age of 24.
As the 12-year-old music streaming company Spotify prepares to go public on April 3, people are wondering what made it so special.More news: NCAA tournament preview: No. 1 Virginia
It says the royalty costs it pays to artists and publishers are so hard to calculate that in the past it has been unsure how much it owed, prompting what are known as "material weaknesses in internal controls" for each of the past three years with the danger of more in the future. He cheekily calls this "self-driving music". "That shouldn't stop just because our stock is more widely owned".
At the investor event Thursday, Spotify execs talked up its global scale, brand awareness, algorithmic music curation and tools provided for music creators to connect with fans. That's both on its platform, and using its targeting and analytics info to deliver efficient ticket and merchandise promotions elsewhere.
Spotify is available in more 4 countries since this week. Ek cited statistics that showed music industry revenues had fallen 40% between 1999 and 2014 but rebounded somewhat between 2014 and 2016 as Spotify grew its user base.
Spotify shares have traded on secondary markets for a while already, and the company believes this will prove to be a good guide for its public market pricing - though we can perhaps expect a little more volatility than we might see with a traditional IPO. But with its focus on playlists and suggestion data, Spotify could build melodic handcuffs for its listeners who wouldn't dream of starting from scratch on a competitor.More news: Broadcom ends bid for Qualcomm after President Trump nixes deal
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