Published: Wed, April 04, 2018
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Spotify Greeted on NYSE With Wrong Flag (They're Swedish, Not Swiss)

Spotify Greeted on NYSE With Wrong Flag (They're Swedish, Not Swiss)

The stock opened at $165.90 per share and has been trending down since then; according to Market Watch, as of this writing, it's hovering around $153.

Either way, here's what we know for sure: Telia's sale tells us that Spotify's current valuation in private markets must be at least $19.43bn. Estimates for the price of the shares once they hit the public market were between $160 and $220, CNN reported.

Besides blending technology with a subscription model to reshape a popular form of entertainment, Spotify and Netflix have a common executive in their lineage. Hoever, according to The Guardian, Spotify has instead opted to sell already existing shares now being held by private investors.

RBC Capital Markets analyst Mark Mahaney is among the analysts that have already stepped up to the plate with some thoughts on Spotify.

Spotify is unarguably the biggest and best-known of the streaming services that have transformed the music business.

Two American flags and one Swiss flag hung outside the stock exchange on the day of the music streaming company's initial public offering. Some 13 million of Spotify shares traded between October and March 9, according to PitchBook (pdf), with prices dotted around a huge range.

Global recorded music industry revenue in 2014 had fallen by 40 per cent to $14.3-billion from $23.8-billion in 1999, when the rise of music file-sharing service Napster ravaged sales of CDs. And a slump in shares of Facebook and other technology-related stocks means investors may be less willing to bet on the listing.

Banks usually provide stabilization for IPOs, but not in Spotify's case.

The company's owners expect to collect around $1bn with the move and expect a negative impact between €35-40m costs from the move.

In another unusual twist, the company's founders declined to ring the traditional opening bell on the trading floor on Wall Street.

Cheddar will cover the direct listing live from the NYSE all day on Tuesday.

Spotify is expected to reach 170 million listeners this year, up from the current 157 million, with paying subscribers slated to increase from 72 million to 90 million.

"While this is obviously a big day and I'm really proud of my employees, I really just feel like we're in the early days, not celebrating the end days like so many other companies are doing", Ek said about the company's upcoming NYSE listing. Smaller companies have listed without an IPO, but for a company of Spotify's size, this is unprecedented.

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