Spotify will purportedly go public in 2017Daniel Ek

Spotify will purportedly go public in 2017

Dominant streaming service Spotify aims to go public in the second half of 2017, according to reports from five individuals familiar with the plan. The company, which is currently valued at $8 billion, raised $1 billion in a funding round from investors just before the company’s tenth birthday in March of this year.

Spotify’s past 12 months have been among its most successful yet — the service now counts 100 million monthly users, 30 million of which are paying subscribers, and sales doubled to $2.2 billion during the time period. Spotify has yet to post profit, however, as almost 60 percent of the company’s income is paid out directly to record labels. Spotify accounts for more than 10 percent of labels’ revenue. Altogether, Spotify paid the music industry $1.8 billion in commission in 2015.

Via: Bloomberg Business

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