Spotify assures investors that plans to go public remain on track

The Swedish streaming service told investors that a public listing ‘remains an option’ after the company’s co-founder had said that an IPO was not on the agenda

The music streaming service has contracted Morgan Stanley, Goldman Sachs and Allen & Co to advise on the process (Getty)

Spotify moved quickly to assure investors that plans to go public are still on track for the music streaming service after co-founder and board member Martin Lorentzon told Swedish radio that reports of an impending New York Stock Exchange listing were false.

Mr Lorentzon said the company did not “need any money” and that it is “not looking for more and any IPO isn’t on the agenda”. He said Spotify is still focusing on growth over profitability.

“Martin is our co-founder and a board member, but not a spokesman for the company,” Spotify said in an emailed statement Friday. A public listing “remains an option for us,” the company said, adding it has not confirmed any “definitive” plans.

Last month, Spotify said it had taken a step towards going public, hiring banks to help it list in New York. The Swedish streaming service contracted Morgan Stanley, Goldman Sachs and Allen & Co to advise on the process, according to spokeswoman Alison Bonny.

Spotify is mulling whether to do a direct listing rather than a more traditional public offering, a person familiar with the plans has said, although a final decision has not been made. Under this process, the company would not sell new shares to raise money. Instead it will just make existing shares available to trade, allowing current investors to cash out.

With 50 million paying subscribers, Spotify is the world’s largest music streaming service. Helmed by chief executive and co-founder Daniel Ek, the company has maintained its leadership even as larger technology companies including Apple, Amazon and Google have entered the market. The unprofitable company has raised more than $1.5bn (£1.2bn) since it was founded more than a decade ago.

Bloomberg