MUSIC STREAMING SERVICE Spotify has filed to plonk itself on the New York Stock Exchange, with an initial public offering (IPO) of up to $1bn.
That a pretty hefty sum for a company currently operating at a loss. But this is the tech world, where bleeding cash yet being worth truckloads of money is commonplace.
The Swedish streaming firm is the first company to directly list itself with the US Securities and Exchange Commission, rather than seek an IPO through a bank or stockbroker. As such, the move will involve selling existing shares held by investors and staff rather than the sale of new shares.
This approach is a way for Spotify to raise a healthy dose of capital without needing to pay a third-party bank the privilege to do so.
Despite share prices being revealed, the move is set to value the Spotify at anywhere between $16bn and $23bn, again a huge amount for a company that's never turned a profit; in 2017 the company bled $1,5bn.
But Spotify has a massive user base with a total of 71 million 'Premium' subscribers and 159 million monthly users. With capital to build upon this gained from an IPO, Spotify could use the cash to improve its margins, grow its service and start making some money.
And despite fessing up to its losses in the IPO filing, Spotify appears to be fairly upbeat about its future: "We set out to reimagine the music industry and to provide a better way for both artists and consumers to benefit from the digital transformation of the music industry.
"Spotify was founded on the belief that music is universal and that streaming is a more robust and seamless access model that benefits both artists and music fans."
Given Spotify is a common service found in tech like smart speakers and fancy new connected car infotainment systems, the streaming firm has its fingers in a lot of pies, so we suspect the IPO will only help it slide into other areas as well.
A music-streaming smart fridge, anyone? µ
Getting botter all the time
It's the best of the rest from Google's week
Just like we promised ourselves we wouldn't do again