Spotify has just reached an impressive milestone in an extremely competitive market of streaming services. The company managed to raise a community of 60 million subscribers. Such an accomplishment lent Spotify the power to decide and mold the future it wants for its business. Therefore, the company decided to go after an IPO-less listing.
Spotify Has Been Struggling for Nine Years to Form the Biggest Music Community of 60 Million Subscribers
Once it succeeded as a top company in the online music industry, Spotify reportedly decided to move forward and list on the New York Stock Exchange. However, it won’t go down the usual path. Instead, it will leave behind a key element, which is the initial public offering.
Spotify started operations back in October 2008, and it had to work for six long years to mark its first back of 10 million paying subscribers. By comparison, Apple Music achieved this target in less than a year since its launch. However, Spotify managed to be crowned as the king of music streaming services as of July 2017 when it reached a total of 60 million subscribers.
An IPO-Less Listing Will Allow Shareholders to Enjoy the Full Fruits of Their Investments
On the other hand, with great power comes great responsibility especially for shareholders. Those who believed in this business and invested in it will want to monetize equity holdings. A public listing is the fastest way to achieve this goal. While the company announced no such move, it is a widely spread rumor that it will attempt an IPO-less listing.
U.S. regulations have no restrictions in case a company decides for a direct listing on the stock market. This way, shareholders are allowed to sell their assets as soon as possible while investors can pick up on these available resources as well. So, what’s in it for investors? The main advantage is that they can ask for a full value that the market will dictate later. Therefore, the equity dilution vanishes into thin air.
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