Report: Spotify Mulling Autumn IPO

By Jennifer Booton FOXBusiness


Spotify might be looking to make a market debut sometime this year.

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According to a report by Quartz, the popular music streaming company has launched informal chats with investment banks for a potential initial public offering.

Spotify competes with Beats Music, Google Music (GOOG) and Pandora (P) in the streaming market. It could also soon face competition from Apple (AAPL).

The company may begin formal meetings as early as next month, according to Quartz, with the six-year-old service aiming for a potential IPO in the fall of this year.  

A spokesperson for Spotify told FOX Business it doesn’t have “any comment” on the report.

Earlier this month Spotify bought Echo Nest, a music data company with a host of algorithms that help machines make music recommendations, and obtained a $200 million credit line from lenders.

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Among those lenders were Morgan Stanley (MS), Deutsche Bank (DB) and Goldman Sachs (GS), all heavily involved in the IPO business. 

Similar to Pandora, Spotify makes money by selling ads and offering ad-free subscriptions.

However, unlike Pandora, which serves more like a digital radio where algorithms choose songs for users based on specific genres, Spotify offers a more personalized streaming service, enabling users to listen to whole albums of specific artists and create playlists.

It also offers a digital radio service.

Spotify was founded in 2008 by two Swedish entrepreneurs. 

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