Spotify Begins Trading On NYSE
Spotify, the popular music streaming service starts, trading on the New York Stock Exchange Tuesday morning. The company opted to forego the traditional IPO and instead list and trade its shares without the help of an investment bank. Many in both the tech and music industries are watching the stock closely.
The music business has been in freefall ever since Napster and Grokster made it possible to download music for free. Spotify is the most notable music startup to gain a large audience. The problem is, many are skeptical the company can ever make a profit. Still, analysts say Spotify’s public listing could encourage more investment into the music business.
“It really is a bellwether for just how much the wider market values the music industry,” said Mark Mulligan, managing director for the investment research firm MIDiA.
The tech sector is also watching Spotify to see how large, privately held companies are valued. Dropbox, Airbnb, and Uber are all moving closer to jumping from private to public.