Bloomberg Asks, 'Will A Spotify IPO Live Up To Its $8 Billion Valuation?'
July 20, 2016 at 4:08 AM (PT)
BLOOMBERG reports, "SPOTIFY aims to go public in the second half of next year, say five people familiar with the plan. Shortly before its 10th birthday, the Swedish company raised $1 billion in convertible debt from investors who valued the company at more than $8 billion. It’s also lost money in each of those 10 years. Companies awash in red ink can make it in public markets — AMAZON.COM, TESLA — but it’s hard to hang a business on music streaming."
“This is just a tough sector, and that is skepticism SPOTIFY will have to overcome,” says RBC CAPITAL MARKETS analyst MARK MAHANEY.
At the beginning of the month, a new report from COWEN & CO. found SPOTIFY now leads the on-demand music business. INVESTORS.COM reports, "it is increasingly facing challenges from a host of competitors, including AMAZON.COM, APPLE, PANDORA MEDIA and ALPHABET-owned YOUTUBE. (NET NEWS 7/9).