Spotify Confidentially Files for IPO (Report)

Dorothy Hong
Spotify CEO Daniel Ek

The music streaming company submitted the paperwork in late December, according to Axios.

Music streaming company Spotify has confidentially filed the paperwork for an initial public offering, according to a report in Axios

The publication, citing unnamed sources, reports that the Swedish company filed with the Securities and Exchange Commission in late December.

A Spotify IPO has been expected for some time. It was reported over the summer that Spotify was looking to directly list its shares on the New York Stock Exchange, meaning that it wouldn't hold a traditional road show to court investors to underwrite the sale. The Wall Street Journal reported in December that the company was expected to get the approvals from the SEC to go through with that process.

The timing of its filing indicates that Spotify is looking to do an IPO during the first quarter of 2018.

The 11-year-old company, which is run by founder and CEO Daniel Ek, has more than 140 million users and more than 60 million paying subscribers, making it larger than rival Apple Music. 

Spotify has raised over $2.7 billion and counts Goldman Sachs, TCV and Accel Partners as some of its investors. Reports peg its valuation at around $20 billion. 

News of the filing comes a few days after Spotify was hit with a $1.6 billion copyright lawsuit from the publishing company behind compositions by Tom Petty, Rivers Cuomo, Neil Young and others. In the lawsuit, Wixen Music Publishing alleges that Spotify is using tens of thousands of songs without a license.

A Spotify spokesman declined to comment on the IPO.