Spotify debuts on Wall Street with a $30 billion valuation

Spotify debuts on Wall Street with a $30 billion valuation

Shares in music streaming service Spotify finished 13pc up on their first day on the NY stock exchange yesterday. The rapid growth of Apple's streaming service, Apple Music, could see it catch up to Spotify's American customer base. Sweden's flag is blue and yellow.

Amid Spotify's methodical wait to list, MIDiA Research managing director Mark Mulligan called Tuesday "arguably the most anticipated day in the history of digital music". The company says it has received $776.7 million of that in cash (before fees), with the other $192.7 million going to insiders selling stock into the IPO. Facebook Inc and Alibaba Group Holding Ltd remain the largest tech stock listings in recent years.

At $26.5bn at the end of the first trading day, Spotify ranks in the top 10 largest United States tech listings.

Tiger Global's $11 billion venture capital business, led by Lee Fixel, started its investment in Spotify in 2015 and expanded it into one of the unit's biggest positions, the person said.

Since launching its streaming music service a decade ago, the Stockholm-founded company has overcome heavy resistance from big record labels and some major music artists to transform how the industry makes money.

Spotify is often credited for reversing a tide of declining revenue in the music industry and past year, profits rose to their highest level in a decade, largely thanks to paid subscribers.

More news: Intel's new Core i9 chips for laptops show incredible promise

With a couple of exceptions, Spotify's investors were free to unload their shares in the almost 12-year-old company.

Spotify stock ended its second day of trading at $145.87 down $4.79 or 2.11%. However, Apple doesn't rely on paid subscribers to earn a profit for Apple Music, as it has a huge retail family and consumer goods offering - products it can also use to push its streaming service to consumers.

Normally, companies ring bells. "Spotify has never been a normal kind of company".

Amazon Music Unlimited has an estimated 16 million paying subscribers and Pandora has 5.48 million total subscribers.

Around 30 million shares in the world's largest music streaming service, which has more than 140m active users, were traded on opening day.

Related Articles

  • Apple is working on new touchless controls for its displays

    Apple is working on new touchless controls for its displays

    You'll need to get pretty close to the screen, though, because the gestures rely on technology built into the display itself. OLED displays are capable of being shaped into curves or even folded, unlike LCD screens, which were used in older iPhones .
    Seventh-inning struggles doom Cleveland Indians in series finale against Seattle Mariners

    Seventh-inning struggles doom Cleveland Indians in series finale against Seattle Mariners

    But on Sunday, his power and his glove in center field led the Seattle Mariners to a 5-4 win against the Cleveland Indians . He was acquired in a waiver claim from the Braves in October after making his major league debut with Atlanta last season.
    Volunteers dye eggs for the Easter egg hunt at the Capitol

    Volunteers dye eggs for the Easter egg hunt at the Capitol

    With Easter this Sunday, many children in northeastern and central Pennsylvania will be out hunting for eggs this weekend. There was face painting and games offered by the Wheelie Mobilee from My Museum and by the Monterey Public Library.
  • Giants, Rams never had 'serious negotiations' about Odell Beckham

    Giants, Rams never had 'serious negotiations' about Odell Beckham

    The Rams emerged as the primary potential trade partner with the Giants for OBJ, but their asking price was likely too high. But it wasn't until a chance meeting between Belichick and Rams head coach Sean McVay that a deal started to materialize.
    Robert Griffin III agrees to 1-year deal with Baltimore Ravens

    Robert Griffin III agrees to 1-year deal with Baltimore Ravens

    According to Ian Rapoport , the Baltimore Ravens have made a decision to sign Griffin to a one year deal as a backup role. But he suffered a serious knee injury in that playoff game after the 2012 season and was never the same player again.
    Gender pay gap: when does your company stop paying women in 2018?

    Gender pay gap: when does your company stop paying women in 2018?

    Amazon UK Services, the division in question, is the only part of the business which reports a gender pay gap in favour of women. Want to find out the gender pay gap at your company? Its mean pay gap, meanwhile, is five per cent in men's favour.
  • EPA relaxes emission standards

    EPA relaxes emission standards

    California agreed to follow the new rule so that automakers could meet a single national standard. Greenhouse gas emissions are tied directly to how much gasoline a vehicle burns.
    Countdown to Commonwealth games

    Countdown to Commonwealth games

    In the United Kingdom , the opening ceremony of the 2018 Commonwealth Games can be seen on BBC One from 10:30am to 1:30pm GMT. Vikas will test the blood of victor between Granada and Australia on 8 April.
    Allegri: Juve learnt from defeat to Real

    Allegri: Juve learnt from defeat to Real

    Bonucci's departure at the end of last season meant the break-up of the formidable "BBC" defence, which also featured Giorgio Chiellini and Andrea Barzagli.
  • March winds bring April (snow) showers

    March winds bring April (snow) showers

    There's a possibility that Monday and Tuesday will also see snow but it's a little too early to know how that storm will play out. Another sprinkle of spring snow could hit MA later this week, according to the National Weather Service Boston office.
    Family in China find long-lost daughter

    Family in China find long-lost daughter

    Kang grew up in a loving adoptive family in a town just 20km away and had no recollection about how she ended up there. Photos from the occasion showed a tearful Kang Ying hugging her family as a crush of photographers surrounded them.
    Prince Philip is admitted to hospital for hip surgery

    Prince Philip is admitted to hospital for hip surgery

    After the second world war, he got married to Elizabeth II in 1947 and abandoned his Greek and Danish royal titles. Officially, Queen Elizabeth has supported Prince Philip's decision to retire.