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Digital
Spotify not considering IPO
By CMU Editorial | Published on Monday 16 April 2012
Spotify boss Daniel Ek may initiate another round of fund raising, but a flotation is not on the agenda at the moment, or at least that’s what he’s told Swedish newspaper Dagens Industri (in an article reported on by TechCrunch).
While the costs of global expansion are significant for a service like Spotify, which is paying over large royalty cheques to the big rights owners, and experts expect the company to lose $60 million this year, Ek told the Swedish paper he was upbeat about his firm’s position.
Growth remains the main objective, Ek said, presumably by launching in new countries, and pushing partnerships such as the Facebook alliance and the embeddable playlist widget launched last week and already taken up by various established media.
Although loss making overall, Ek says he doesn’t need any more cash to execute his current business plan, subscription revenues and ad monies helping meet operational costs. That said, he didn’t rule out seeking additional funding in the future – especially if the right kind of investor came along – but insisted going the IPO route, and floating on a stock exchange somewhere in the world, is not currently being considered, despite a number of other tech firms pursuing that option of late.
