Report: Spotify Adds Four To Board With IPO Imminent

Spotify Preparing For Market

SPOTIFY has added four new directors to its board in anticipation of its upcoming IPO, including TOM STAGGS, former WALT DISNEY COO, according to the FINANCIAL TIMES.

PADMASREE WARRIOR, head of the U.S. arm of CHINESE electric carmaker NEXT EV; former YOUTUBE Head Of Product SHISHIR MEHROTRA and SWEDISH investment firm KINNEVIK head CRISTINA STENBECK will also become directors of the SPOTIFY board. 

The appointments are subject to shareholder approval, while SPOTIFY has refused to confirm.

SPOTIFY recently hired MORGAN STANLEY, GOLDMAN SACHS and ALLEN & CO. to advise on a public listing on the NEW YORK STOCK EXCHANGE. 

SPOTIFY appointed NETFLIX Chief Content Officer TED SARANDOS to the board eight months ago, which, combined with DISNEY's STAGGS, indicates the company is exploring video as an important part of its platform moving forward. 

SPOTIFY recently reached agreements with UNIVERSAL MUSIC GROUP and indie org MERLIN, and are currently in negotiations with both SONY and WARNER MUSIC. 

SPOTIFY is reportedly leaning towards a direct listing through which investors would trade shares in the open market, rather than raising new money in a traditional public offering. The company has already raised more than $1.5bn and was valued at $8.5bn in a funding round last year.

Last year, the global music industry grew 5.9% — the fastest rate of growth since 1997 — as revenue generated by streaming services -- including SPOTIFY and APPLE MUSIC -- increased 60%, accounting for more than 50% of sales worldwide.. 

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