Spotify slides off its debut price after 'novel' direct offering

04 April 2018, 01:30 | Santos Harmon

Tyler Roi Conde Pelle

Tyler Roi Conde
Pelle

Spotify has a unique case due to its stock structure.

Spotify's public listing is being closely watched by other companies, because the Swedish company structured its offering to allow existing investors to sell directly to the public without listing shares of its own. But until then let's step back and admire this whole thing for the zeitgeist-ian work of art that it really is; Spotify is about to unleash the first authentically Millennial IPO.

"Donald Trump's tweeted attacks on Amazon don't help lift sentiment towards the sector either".

Some 27 million shares had changed hands by late afternoon.

Since launching its streaming music service a decade ago, the Stockholm-founded company has overcome heavy initial resistance from big record labels and among some major music artists to transform how the industry makes money. In 2014, it attracts 10 million paying members from among its 40 million active users. Taylor Swift released a new "Delicate" music video on Spotify last month. However, as The Guardian points out, it's hard to value the music streaming firm because in its 12 years of existence, it's never turned a profit, despite the fact that it now has 157 million listeners, of which 71 million are paying subscribers. Shares for Facebook, Netflix and Google's parent company Alphabet also rose slightly today, following weeks of uncertainty.

"The attraction of the music-streaming service probably lies in Spotify's strong market share and rapidly growing revenues", Khalaf said.

2 firefighters dead, 2 injured in building collapse in York
Assistant Chief Greg Altland and firefighter Eric Swanson were also injured in the wall collapse, but are expected to recover. Regarding the investigation, city police Chief Troy Bankert said police have no reason to believe this is or isn't arson.

Australia sevens captain James Stannard suffers fractured skull in Sydney incident
A replacement for the double Commonwealth Games medallist will be named by Rugby Australia in due course. Stannard had played in a Commonwealth Games warm-up match in Sydney just hours before the incident.

Pogba problems nothing to do with me, insists Mourinho
Louis van Gaal has insisted that he holds nothing against Jose Mourinho after he succeeded him as Manchester United manager. It was an injury that other players, other clubs, other medical assessments, they end in surgery.

The size of the Stockholm-founded company's market debut puts it on a par with Snap Inc, which went public past year, and was smaller than only Facebook Inc and Alibaba Group Holding Ltd among recent tech stock listings.

Spotify is basically trying to recreate the secondary market activity that happened before it went public.

In a public letter published ahead of its unorthodox listing in New York, Chief Executive Daniel Ek cautioned employees and fans that "Sometimes we succeed, sometimes we stumble" and "I have no doubt that there will be ups and downs".

"Spotify is not raising capital, and our shareholders and employees have been free to buy and sell our stock for years".

In fact, unlike other IPOs, the Spotify founder didn't even ring the opening bell at the New York Stock Exchange. Normally, companies spend their day doing interviews on the trading floor touting why their stock is a good investment.

Investors, meanwhile, will not know how successful the company's listing has been for another week or two, because of the volatility in the share price, said Coffee.



Other News

Trending Now

North Atlantic Treaty Organisation expels seven Russian staff in solidarity with United Kingdom over Salisbury attack
North Atlantic Treaty Organisation is awaiting a new Russian ambassador following the departure of Alexander Grushko. Moscow has fiercely denied any involvement in his attempted murder, instead pointing the finger at London.

'Smallville' Actress Kristin Kreuk 'Horrified' by Her Five Years in 'Sex Cult'
Authorities also say Raniere has been bankrolled by Clare Bronfman, an heiress to the Seagram's liquor fortune. The group was originally based in Albany, New York, but Raniere fled to Mexico previous year .

Islamabad United v Peshawar Zalmi
In a match that guaranteed qualification to final for the victor , the Karachi franchise won the toss and opted to bowl. Hasan Ali and Sameen Gul were the bowlers, who picked up one wicket each for Zalmi.

ICE to Detain Pregnant Women After President Trump Axes Exemption Policy
Detainees also said officers punished them with solitary confinement after they asked for medical attention. Not detaining a pregnant woman doesn't mean she won't have to go through the immigration legal process.

Thousands Rally In Downtown Eugene To Protest Gun Violence
In Scotland, some relatives of those killed in a school shooting in the town of Dunblane in 1996 attended a protest in Edinburgh. The crowd roared with approval as she laid down the students' central demand: a ban on "weapons of war" for all but warriors.

The Outrage Over Facebook's New Data Policy
If you haven't used an app in three months, its access will automatically be removed. But, this does not imply that your Facebook account can be hacked or is secure.

New York Yankees: Bird's Wings Get Clipped Again
Everyone in the Bronx will breathlessly await the results, hoping this Bird can let it fly again. "Then he should be good to go". Enter 2017, and it seemed that Bird would finally get his chance as the Yankee 1st baseman of the future - but not so fast.

Trump aide communicated with ex-Russian intelligence officer during 2016 election
Kilimnik's possible links to Russian spy agencies was closed late a year ago without charges. Mueller is now apparently directly disputing that using Gates's own words.

The Conner Family is still relevant in America
When Kimmel replied that he didn't, Barr responded: "Well, then zip that fucking lip" before collapsing on the couch in laughter. Nevermind her foreign policy", he responded. "You're expressing your views, as insane as they may be", Kimmel said.

VW storing around 300000 diesels at 37 facilities around US
The cars stored at these locations are routinely maintained in a manner to ensure their long-term operability and quality. According to reports, till date, VW has called off almost 120,000 old diesel vehicles from August a year ago .