Spotify is expected to do a direct listing on NYSE later in 2017 or early 2018 , sources told CNBC. Fred Katayama reports.
Spotify is expected to do a direct listing on the NYSE sometime between the end of 2017 and early 2018, according to CNBC. The sources also told CNBC the music streaming site is valued at $13 billion. In a direct listing, the stock price is based on supply and demand. In an initial public offering, a more widely chosen route, a company offers investors shares before it goes public at a set, usually compressed price. Rodrigo Campos runs Wall Street coverage at Reuters: (SOUNDBITE) RODRIGO CAMPOS, REUTERS CORRESPONDENT, (ENGLISH) SAYING: "This must be very exciting for some people, but there is also the fact that Snap just posted its first earnings as a public company, and their stock did pretty badly. It went down almost to the price of the IPO, so maybe the pricing might be tricky until Spotify is able to show that they're growing, that they will continue to grow, that their revenue will continue to grow, and that they're able to attract new people for their music service." Spotify is the world's top music streaming site. It doubled the number of its paying subscribers over the past two years to 50 million as of March. Rival Apple Music has 20 million paying subscribers as of last December.