Daily Trends Now
Daily Trends Now


Spotify Founders Enriched to the Tune of $5.8 Billion in Listing

Spotify Founders Enriched to the Tune of $5.8 Billion in Listing

Shares rose as high as $165.90, which would have indicated a $29.5 billion market capitalization, before falling below $150.

Staff at the stock exchange also hung the Swiss flag outside instead of flag for Spotify's native Sweden. The company says it has received $776.7 million of that in cash (before fees), with the other $192.7 million going to insiders selling stock into the IPO. So while tomorrow puts us on a bigger stage, it doesn't change who we are, what we are about, or how we operate. The business had about $700 million invested in Spotify before it went public through a direct listing, according to a person with knowledge of the matter. A list of other formidable competitors that includes Google and Amazon also offer similar music streaming services, raising the specter of Spotify being wiped out by far richer rivals. But analysts still aren't sure the company should be worth much more than the $27 billion or so indicated by its current share price.

In comparison, when Snap Inc, the parent company of Snapchat, went public in an IPO past year, it paid almost $100m to its team of underwriters.

In the case of Spotify, it has opted for a so-called "direct listing".




After hitting an intra-day low of $134, which was just above the reference price set on Monday before their debut on the floor, they were rebounding, paring their initial drop to trade -1.41% lower at $139. Its first day of trading-with relatively few trades-continued the unusual float. Spotify now has a higher market value than Snapchat owner Snap Inc, which went public previous year. Despite launching over ten years ago, the streaming service has yet to turn a profit, due largely to high operating costs, particularly the royalties it pays to artists and record labels to play their music. On a comparable basis the Apple Music service has 46 million subscribers.

In contrast to last year's debut of social media group Snap, Spotify's top executives were not present at the NYSE to see their company go public for the first time.

Normally, companies ring bells.

Spotify has had a solid debut on Wall Street in one of the most anticipated technology listings in recent times.

follow

editors' picks

April 05, 2018
Spring storm dumps snow in northern MI, blamed in 3 deaths
Wednesday won't be almost as warm, as the high will only reach the low 40s and the low will dip into the mid 20s. It is not unusual weather for April, with the month seeing an average of 2.3 snow days each year.

April 05, 2018
Chinese space station Tiangong 1 ends in a fiery demise
When Tiangong-1 hit the atmosphere, it was most likely traveling at about 17,000 miles per hour . There was no immediate confirmation of the final resting place of any remaining debris.

April 04, 2018
How Parkland students feel about their clear backpacks
Broward County Public Schools announced on March 21 that students would be required to use clear backpacks as a safety measure. Not all students are fans of the change.

April 02, 2018
Turkey rejects mediation offer by France
The Syrian government has strongly condemned the offensive, calling Turkey's operation "a violation of the country's sovereignty". Turkey launched the operation on January 20 to clear terrorist groups from Afrin amid growing threats from the region.

April 01, 2018
Ant and Dec missing from new Britain's Got Talent trailer
Ant McPartlin will appear on this weekend's " Saturday Night Takeaway " as it returns to ITV following a one week break. It's been a manic week for Dec , as the TV presenter has confirmed that his wife Ali is expecting their first child.

April 01, 2018
George Hill exits vs. Pelicans with ankle injury
The Pelicans rank 10th in rebounds per game (44.2) while the Cavaliers rank 22nd in rebounds allowed per game (43.9). He will reportedly work his way back into coaching the Cavaliers beginning Friday against the New Orleans Pelicans .

April 01, 2018
Joel Embiid To Undergo Surgery For Orbital Fracture
Per ESPN's Zach Lowe , depending on how the surgery turns out, Embiid could return to Philadelphia's lineup in two to four weeks. In Embiid's absence, rookie sensation Ben Simmons will have to carry a bigger workload for the playoff-bound Philadelphia 76ers .

April 01, 2018
Vatican tamps down report that Pope Francis denies existence of hell
According to Scalfari's article in Thursday's La Repubblica , he asked the Pope where "bad souls" go and where they are punished. Now, Netflix has picked a up a film titled Come Sunday , which is a biographical drama of Pearson's life at that time.

March 30, 2018
Odds on White Easter with widespread alerts in force for snow disruption
The weather warning for Easter Monday will come into play shortly after midnight and remain in place for much of the day. There's a slight chance of snow showers before the morning commute Friday , then a chance of rain showers after lunch.

March 30, 2018
Malala Yousafzai Returns To Pakistan 6 Years After Taliban Attack
This month, a new girls' school built with her Nobel prize money opened in Shangla, near her home district of Swat. Some say that Yousafzai return signifies the end of extremism in Pakistan and hopefully in the world at large.