Spotify may eschew traditional IPO for direct listing

Listen to this article

00:00
00:00

Spotify is considering listing its shares directly on an exchange as it strives to go public this year, according to people familiar with the music company’s plans.

The company is seriously weighing the move, through which investors would trade on shares in the open market instead of an IPO, but nothing has been decided yet, these people said. The Wall Street Journal first reported the news.

Spotify has raised more than $1.5bn and was valued at $8.5bn in a funding round last year.

The Swedish company this week struck a multiyear licensing deal with Universal Music, the world’s largest record label, clearing a key obstacle towards a public listing. Spotify last month said it reached 50m paying customers, underscoring its role in revenue growth for the music business in the past year.

Copyright The Financial Times Limited 2017. All rights reserved. You may share using our article tools. Please don't copy articles from FT.com and redistribute by email or post to the web.