Spotify, the world’s leading music streaming service, went public on April 3rd 2018. The company was founded in 2006 and has since grown exponentially, boasting over 70 million paying subscribers and over 159 million monthly active users.
Spotify began trading on the New York Stock Exchange at a valuation of around $26 billion. This makes it one of the largest technology companies to go public since Facebook in 2012.
The decision to go public was largely spurred by the need for additional capital to support Spotify’s growth. Going public gives Spotify access to a much larger pool of capital than it had previously been able to access, which it can use to invest in new product development and marketing campaigns.
In addition, going public allows Spotify’s founders and early investors to cash out some of their shares. This could be beneficial for those who had invested heavily in the company early on and are looking for a return on their investment. Going public also allows Spotify to better compete with other streaming services such as Apple Music and Amazon Music.
Going public also gives Spotify more credibility with potential customers, partners and investors. By being listed on a major stock exchange like the NYSE, Spotify is seen as a more legitimate business which may give it an edge over its competitors.
Overall, going public gives Spotify access to much needed capital, allows its founders and early investors to reap the rewards of their hard work, provides greater legitimacy in the eyes of potential customers and partners, and helps it better compete with other streaming services.
Conclusion: Ultimately, going public was an important step for Spotify that allowed them to access new sources of capital that would enable them to continue growing their business. It also provided them with credibility among potential customers and partners that would help give them an edge over their competitors. In short, going public was essential for Spotify’s future success.