Home Music Business Investment Bank Goldman Sachs Dumps $75 Million In Spotify Stock

Investment Bank Goldman Sachs Dumps $75 Million In Spotify Stock

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Goldman Sachs Dumps Spotify Stocks

Recently leaked documents reportedly show that the major investment bank Goldman Sachs sold off $75,000,000.00 worth of shares in the music streaming company Spotify. Normally companies only dump stock when they forsee a problem in the company’s future. However, in this case, it may not be exactly that.

Spotify is planning on a direct public offering of it’s stock on the New York Stock Exchange, and the move by Goldman Sachs may just be a pre-DPO diversification move. It could also be a move to get some nice profit before the company goes public. However, it may be a move that the company didn’t want to let the public know about.

According to Digital Music News:

As such, pre-IPO values of the stock are apparently hitting bubble-like valuations, which might explain the Goldman dump-off.  That’s part of a private shell-game, all based on supposed long-term valuations of the streaming platform.  Indeed, a pre-IPO sale might simply diversify the risk on Spotify, especially given serious profitability and legal concerns dogging the application.

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