Spotify on the cusp of going public following Warner deal

Spotify could soon go public after signing a new licensing agreement with the last of the three big record labels.

The streaming service agreed terms on a deal to make Warner Music Group’s catalogue available to its 140m users.

As Spotify already has deals in place with Sony and Universal, the company is expected to float on the New York Stock Exchange in the coming months.

However, it is believed Spotify will not have an initial public offering (IPO) when it lists on the NYSE.

While nearly all businesses undertake an IPO when going public, raising cash and offering shares to prospective investors, Spotify is expected to list without a sale – potentially increasing the value of its existing investors’ shares.

Warner Music’s chief digital officer, Ole Obermann, wrote of the deal on social site Instagram: “It’s taken us a while to get here, but it’s been worth it, as we’ve arrived at a balanced set of future-focused deal terms.

“Together with Spotify, we’ve found inventive ways to reinforce the value of music, create additional benefits for artists, and excite their fans all over the world.”

He added: “Even with the current pace of growth, there’s still so much potential for music subscription to reach new audiences and territories.”

Today, Spotify boasts 60m paying customers. In comparison, rival streaming service Apple Music has 27m subscribers.

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