Spotify, the world’s largest music streaming service, could make a lot of waves when its shares hit the market. That’s according to Axios Business Editor Dan Primack, who says the offering could be “something like we’ve never seen before.” In an interview with Cheddar, he pointed out that the vast majority of Spotify’s investors are not subject to lock-up periods, meaning they “can, in theory, sell on day one.” That could “significantly increase the volatility” of the shares. Second is Spotify’s decision to go the “direct listing” route. The company will eschew traditional underwriters, with investment banks Morgan Stanley, Goldman Sachs, and Allen & Co. only playing limited roles as advisors. Primack says this is not something just any company can pull off. “Everyone knows what Spotify is. It’s not just a consumer brand -- it is a very, very high-profile consumer brand.” said Primack. Spotify’s filing Wednesday confirmed what everyone already knew -- it is a market leader in the streaming space. At the end of last year it had 159 million monthly active users and 71 million paying subscribers. That is miles ahead of Apple’s 36 million, though a recent [report](https://www.wsj.com/articles/apple-music-on-track-to-overtake-spotify-in-u-s-subscribers-1517745720) suggests the iPhone maker is gaining ground. Spotify also said it brought in more than $5 billion in revenue revenue last year, up 39 percent from the year before. But it’s yet to turn a profit and posted a loss of around $1.5 billion. The company could list before the end of the month. For the full interview, [click here](https://cheddar.com/videos/spotifys-unusual-public-listing-could-change-the-ipo-game).

Share:
More In Business
FBI’s NBA probe puts sports betting businesses in the spotlight
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla’s profit fell in third quarter even as sales rose
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Load More