Watch stories about Spotify planning a stock market flotation this Autumn spread across the web in the coming hours, triggered by a report on tech/business site Quartz.
“The popular music-streaming company has participated in informal chats with some of the investment banks likely to fight for a role in a potential IPO, sources familiar with the process said,” claims the article.
“The six-year-old service may start holding formal meetings as early as next month in anticipation of an offering in autumn. (Though the timeline for a possible IPO could change for a number of reasons, including unfavorable market conditions.)”
READ THE FULL POST AT MUSICALLY:
* Move adds to speculation about IPO
* Senior banker says firm to be valued at $7-8 bln
* Spotify doubled revenue but registered loss in 2012
STOCKHOLM, Feb 17 (Reuters) – Online music streaming service Spotify is recruiting a U.S. financial reporting specialist, adding to speculation that the Swedish start-up is preparing for a share listing, which one banker said could value the firm at as much as $8 billion.
Meeting U.S. Securities and Exchange Commission (SEC) standards for filing financial disclosures is essential for any firm planning to go public and bankers and lawyers said they inferred from the job ad that the company is getting ready for an initial public share offering (IPO), possibly next year.)
READ THE FULL STORY AT REUTERS:
Technologists in Silicon Valley love to tell artists we need to update our business model.
This is hilarious since each of my businesses have been profitable for decades. Stunning when you look at just how unprofitable these Silicon Valley Companies actually are. Twitter for instance lost $645 million dollars last year. Jaw dropping when you consider that their total revenues were $646 million dollars. They spent 2 dollars for every 1 dollar of revenue. And if you look at their losses they are accelerating.
Now consider the fact that the City of San Francisco also gave them approximately $56 million in tax beaks. This is while the city has been pushing to slash benefits to city workers.
Yes maybe Camper Van Beethoven needs to update our business model to include tax breaks and political cronyism.
Posted in Artist Rights, Magic Beaver, Music Streaming, Musician's POV, Silly Con Valley Insight
- Tagged adapt and evolve, Advice, Business Models, david lowery, IPO, Losses, musicians, Net Revenue, Spotify, Twitter