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Spotify opens on NYSE, valuing company at almost $30B

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Re: Spotify opens on NYSE, valuing company at almost $30B

#11

Post by jedberg »

jiggunjer wrote: post #3

How much are the investment bankers earning on this?

Edit: Apparently I was wrong, they still paid a bunch of bankers for advice, but technically they aren't making anything by skimming off the top like most IPOs.

I think nothing.

It's a direct sale, so the insiders (including the employees, not just the execs) get to sell however many shares they want directly to public shareholders.

So the company doesn't make any money either, just the shareholders. I suppose at some point the company itself could sell shares, and then maybe a banker would get involved, but since it would already be publicly listed, I'm not sure they'd have to be.

Re: Spotify opens on NYSE, valuing company at almost $30B

#12

Post by zer00eyz »

swypych wrote: post #7

Spotify Revenue (Euros) 2017 4.09 billion 2016 2.95 billion 2015 1.94 billion Net Loss (Euros) 2017 1.2 billion 2016 539 million Impressive revenue growth, but I can't understand the valuation given the losses. I love their product though.

The value, well it is "investor demand"

The going public part -- well that was foretold with their last round of financing (it was a condition) and this was a strange way to do it.

You may love the product but will it last is the question. If I were going to bet I would say that 5 years down the road someone buys it for pennies on the dollar or it goes bankrupt due to toxic debt.

I wonder what the short position is on it.

Re: Spotify opens on NYSE, valuing company at almost $30B

#13

Post by [deleted] »

overcast wrote: post #8
froindt wrote: post #5

Maybe my perception is off, but it seems like we're getting lots of tech IPO's in a relatively short time. Stitch Fix, Dropbox, Blue Apron, Snap, and Roku to name a few. For a long time we weren't seeing too many big tech IPO's. Did something fundamentally change in the market to lead to this, or did all these companies just happen to make it to "market maturity" around the same time?

Remember what the stock market charts looked like last time? Stockpile some cash, invest when it falls out.

[deleted]

Re: Spotify opens on NYSE, valuing company at almost $30B

#14

Post by nfriedly »

jiggunjer wrote: post #3

How much are the investment bankers earning on this?

I think it was somewhere around $30 million spent on bankers for the non-IPO. (Which I guess is less then what they would have spent on an actual IPO? Although in that case, the cash raised from the IPO would have paid for the banker expenses.)

Edit: this is where I got the $30 million figure from: https://www.bloomberg.com/view/articles/2018-01-16/spotify-w...

Re: Spotify opens on NYSE, valuing company at almost $30B

#16

Post by albertgoeswoof »

froindt wrote: post #5

Maybe my perception is off, but it seems like we're getting lots of tech IPO's in a relatively short time. Stitch Fix, Dropbox, Blue Apron, Snap, and Roku to name a few. For a long time we weren't seeing too many big tech IPO's. Did something fundamentally change in the market to lead to this, or did all these companies just happen to make it to "market maturity" around the same time?

Are blue apron and stitch fix tech companies? I thought they were just sending out boxes of stuff to subscribers, with a website/app for taking orders?

Re: Spotify opens on NYSE, valuing company at almost $30B

#17

Post by jacquesm »

froindt wrote: post #5

Maybe my perception is off, but it seems like we're getting lots of tech IPO's in a relatively short time. Stitch Fix, Dropbox, Blue Apron, Snap, and Roku to name a few. For a long time we weren't seeing too many big tech IPO's. Did something fundamentally change in the market to lead to this, or did all these companies just happen to make it to "market maturity" around the same time?

> Did something fundamentally change in the market to lead to this, or did all these companies just happen to make it to "market maturity" around the same time?

One successful IPO will beget a whole raft of follow-ons in similar segments to profit from the 'atmosphere' as much as possible. Until the first one that bombs, then it is immediately game over. So there tends to be a bursty nature to this IPO thing.

Re: Spotify opens on NYSE, valuing company at almost $30B

#18

Post by maxxxxx »

froindt wrote: post #5

Maybe my perception is off, but it seems like we're getting lots of tech IPO's in a relatively short time. Stitch Fix, Dropbox, Blue Apron, Snap, and Roku to name a few. For a long time we weren't seeing too many big tech IPO's. Did something fundamentally change in the market to lead to this, or did all these companies just happen to make it to "market maturity" around the same time?

I think they are dumping their stock on the public before the market takes a downturn. For most of these stocks the only way to go is down.

Re: Spotify opens on NYSE, valuing company at almost $30B

#19

Post by poooogles »

fortythirteen wrote: post #9

> The company says that in 2018, shares traded on the private markets between $90 and $132.50. > Losses for last year were 1.2 billion Euros ($1.47 billion), which compares to 539 million Euros ($661 million) the year before. Well, there's the short of the year.

>Well, there's the short of the year.

I think you're missing SNAP.

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