In anticipation of their much-discussed and speculated upon public stock offering, Spotify – the world’s biggest music streaming site (next to YouTube) – opened offices in New York City. But now a company exec may have put water on the fire in the market, likening news of an IPO or DPO on the NYSE to “fake news.”
Martin Lorenzton, co-founder of the Swedish streaming giant, told Sveriges Radio that any IPO rumors were “completely made up” and that “There is no IPO on the horizon.” He added “We don’t need any money.”
“I am not saying it is fake news, but half of what the media writes is usually correct and half is usually not,” continued Lorenzton.
But the co-founder’s downplaying of the rumors completely contradict other sources and public moves Spotify has been making.
Digital Music News reports:
Last month, Spotify reportedly contacted and started working with investment banks Morgan Stanley, Goldman Sachs, and Allen & Co. They reportedly want to know how to move forward with a direct listing on the New York Stock Exchange. In fact, a source within the company told Reuters that the IPO will likely happen “within twelve months from now.”
To add to the drama of this story, Spotify officially dismissed Lorenzton’s comments and said he had no authority to speak on behalf of the company. However, they neither confirmed nor denied the public stock offering rumors/plans.
Despite all this, if the company hopes to go public, they still need to deal with their profitability problem. The company doubled it’s losses this year and haven’t turned a profit in it’s 10 year history.