Spotify files for its IPO
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Spotify files for its IPO
1–10 of 218 posts
Re: Spotify files for its IPO
#2Will be interesting as not many high profile companies try this back door way of listing.
This seems much more like a forced IPO to get someone cashed out than the typical IPO to raise funds.
One thing to remember if you are investing, is that there will almost certainly be no restrictions on selling stock, meaning that employee's, C-level execs and early investors won't have the typical lock up period.
And since they aren't using an underwriter, there is no back stop for the shares sliding on the first day of trading.
This doesn't do a whole lot to inspire confidence in the company, Look for the CEO to make an announcement that they will be holding their shares, or be prepared to buy into a company while the people on the inside are getting out of.
As a user, I'm really excited for them, as an investor not so much. Hopefully they'll release some good news leading up to their IPO which could be as early as March.
Re: Spotify files for its IPO
#3Crazy timing with them just getting hit with a $1.6B lawsuit.
https://www.reuters.com/article/us-spotify-lawsuit/spotify-h...
Re: Spotify files for its IPO
#4Crazy timing with them just getting hit with a $1.6B lawsuit. https://www.reuters.com/article/us-spotify-lawsuit/spotify-h...
I wonder if the lawsuit was purposefully timed near the IPO announcement, in an attempt to heap extra pressure on Spotify to settle quickly.
Re: Spotify files for its IPO
#5They announced that this was coming a while ago, but I’m curious- is there any financial advantage to them IPOing now with respect to the lawsuit?
Like say if the lawsuit cleans them out, does being a publicly listed company vs a private one make for a different outcome?
Looking to hear from someone who’d have some domain knowledge on this stuff.
EDIT: Or possibly the other way around, does this allow them to finance the costs of the lawsuit?
Re: Spotify files for its IPO
#6They announced that this was coming a while ago, but I’m curious- is there any financial advantage to them IPOing now with respect to the lawsuit? Like say if the lawsuit cleans them out, does being a publicly listed company vs a private one make for a different outcome? Looking to hear from someone who’d have some domain knowledge on this stuff. EDIT: Or possibly the other way around, does this allow them to finance…
Lawsuits come out when you file. Delaying filing would delay the lawsuit.
Re: Spotify files for its IPO
#7They announced that this was coming a while ago, but I’m curious- is there any financial advantage to them IPOing now with respect to the lawsuit? Like say if the lawsuit cleans them out, does being a publicly listed company vs a private one make for a different outcome? Looking to hear from someone who’d have some domain knowledge on this stuff. EDIT: Or possibly the other way around, does this allow them to finance…
Generally companies try to settle fast before the IPO so there are less concerns to invest.
No domain knowledge btw, just seen it happen a couple of times before
Re: Spotify files for its IPO
#8The lawsuit might make it difficult for them to IPO:
https://www.inc.com/jeremy-quittner/lawsuits-can-sink-an-ipo...
Re: Spotify files for its IPO
#9They announced that this was coming a while ago, but I’m curious- is there any financial advantage to them IPOing now with respect to the lawsuit? Like say if the lawsuit cleans them out, does being a publicly listed company vs a private one make for a different outcome? Looking to hear from someone who’d have some domain knowledge on this stuff. EDIT: Or possibly the other way around, does this allow them to finance…
Generally companies try to settle fast before the IPO so there are less concerns to invest. No domain knowledge btw, just seen it happen a couple of times before
Hey, better than nothing! Thanks.
Re: Spotify files for its IPO
#10Will be interesting as not many high profile companies try this back door way of listing. This seems much more like a forced IPO to get someone cashed out than the typical IPO to raise funds. One thing to remember if you are investing, is that there will almost certainly be no restrictions on selling stock, meaning that employee's, C-level execs and early investors won't have the typical lock up period. And since the…
There is a time pressure for them to IPO given the terms of some loans they took out in 2016.
It seems the loan included penalties tied to how long it takes them to IPO. Apparently for every six months thereafter till the stock lists, the interest rate will keep going up by 1%.
(http://www.sramanamitra.com/2017/03/08/2017-ipo-prospects-sp...)