Spotify files to go public through a direct listing instead of IPO,cutting out underwriters

GAMETHEORY

Rising Star
BGOL Investor
FOR seasoned bankers and starry-eyed entrepreneurs alike, doing an IPO, or initial public offering is synonymous with the very idea of taking a firm public.

No wonder, then, that the decision by Spotify, a music-streaming service, to opt for an unconventional alternative called a “direct listing” has prompted debate.

Instead of paying investment banks hefty fees to arrange an IPO, Spotify plans to have existing shares simply switch one day to being tradable on the New York Stock Exchange

Good or Bad?

Thoughts?


https://www.wsj.com/articles/spotify-files-confidentially-with-sec-to-go-public-1515002444?mod=e2tw
 
Back
Top