Spotify saves millions with unusual stock market debut

Spotify saves millions with unusual stock market debut

Spotify saves millions with unusual stock market debut

At $26.5bn at the end of the first trading day, Spotify ranks in the top 10 largest United States tech listings. The company's losses, however, more than doubled, reaching €1.24 billion (£1.08 billion) in 2017 versus €539 million (£470.84 million) in 2016.

Spotify opened at $165.90 a share on the New York Stock Exchange.

The company is now valued at around $26.5bn, which is enough to put in the top 10 debuting technology companies of all-time, alongside Facebook and Alibaba.

However, in an interview with CBS This Morning on Tuesday, Spotify CEO Daniel Ek seemed unconcerned by the prospect of competition with Apple. Big labels provide 87 percent of total streams while the company provides these labels billions in revenue.

This way, the company was able to save tens of millions of dollars in fees while still giving its employees and early investors the chance to cash out.

With over 71 million worldwide subscribers so far, Spotify aims to increase that number to as many as 96 million subscribers by the end of the year.

That means the $97.30 gain is exclusively to Sony, and was calculated after the company made royalty payments to artists and indie labels.

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This is despite being the world's largest music-streaming service with 71 million paying subscribers, close to 160 million monthly listeners, and revenue of almost $US5bn in the past year, as it tries to cover costs, including the royalties it pays to record labels and artists.

Spotify is not only competing with Apple in this space. That places the Swedish company at a valuation of $25 billion, well above Reuters' estimate of $19 billion, and ranks Spotify as the third-largest tech IPO of all time, according to Dealogic.

The popular music streaming service Spotify had an unexpected debut on the New York Stock Exchange (NYSE).

"Spotify's strong market debut shows that investors regard it as a healthy and promising business, and it's easy to see why", eMarketer analyst Paul Verna told FOX Business.

Since starting up in Sweden in 2008, Spotify has expanded to 65 countries and has a library of more than 30m songs. After losing 1.2 billion euro, Spotify has also made it clear that it intends to remain focused on adding more subscribers instead of making money for now.

Spotify's listing was not a conventional one as there was no IPO. "We are about twice the size of them", he said.

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