Swedish music streaming service Spotify discretely filed for a direct listing on the New York Stock Exchange last month, with plans to begin trading before the end of 2018’s first quarter. The direct listing method is different than traditional initial public offering procedures, which may involve road shows and cost considerably more. Instead, Spotify’s current investors could begin trading shares on the open market without a formal offering or predetermined price – a process that may encourage other tech companies to do the same.
Last week, Wixen Music Publishing sued Spotify, seeking damages of $1.6 billion dollars. Wixen alleges that Spotify streamed thousands of songs without a license and compensation to the publisher. Sources told CNBC that it is “business as usual” at Spotify, and the lawsuit is not concerning.
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