There is a lot of buzz on the Street that Spotify might be eyeing an initial public offering (IPO) for itself in the near future. According to reporting from CNBC, the music company filed confidential IPO paperwork back in December. For the time being, we do not know a whole lot more about what may be going on with them. All that we can say is that if the rumors are true, this may be a sign of the company moving towards an IPO as early as this year.
There have been plenty of rumors about when Spotify would launch its IPO. The suggestion was that it will happen either in the fourth quarter of 2017 or the first quarter of 2018. Obviously, we are now in the first quarter of 2018. Therefore, Spotify may definitely be signaling that it is ready to launch as a public company.
It is a music-streaming service that has caught fire with those who love to listen to music. It is simply so easy to find out about new music on there, and many people cannot stop themselves from binge-listening to hours upon hours of music when they find a station on Spotify that they particularly like.
We know that it already has a strong fan base, so will it make for a good investment? That depends on who you ask. Some see this as a company that does not have strong enough barriers to entry to make it all that profitable in the long-term. Others say that it has created such a unique name for itself that other companies will have a hard time even attempting to compete with it. It is somewhat easy to picture either scenario being true if you can put yourself in the shoes of someone who thinks that way.
Goldman Sachs, Morgan Stanley, and Allen & Co. could all be assisting in the launch of this IPO if it does in fact happen. They are the ones who are said to be behind the launch of this particular IPO. If true, they would be quite the boon for those who had helped launch the IPO. They get first nibbles at the shares, and those shares could turn out to be worth quite a lot some day if Spotify continues to hold on to the superior position that it has in the market it is in. We will all have to wait and see if it really comes to pass.