Spotify has quietly filed for an IPO, according to a report on Axios. The report says that the music streaming service confidentially filed IPO documents with the SEC at the end of December.
However, rather than a traditional float, with all the associated circus – and fees – that come with it, Spotify is thought to be targeting a direct listing, probably in the first half of 2018, and possibly in Q1. It wouldn’t be the first company to go for a direct listing, but with its $8.4bn (£6.2bn) valuation, it would be one of the largest.
Yesterday, it emerged that Spotify has been hit by a $1.6bn lawsuit, brought by Wixen Music Publishing, which represents a raft of top artists, for its alleged use of thousands of songs without a proper licence.