Look for a non-traditional IPO at the end of this year or early 2018.
Spotify has cleared what ought to be the last major hurdle before it goes public: It has renewed a licensing deal with Warner Music Group.
That means that Spotify now has deals in place with all three of the major music labels, and that means it will be able to tell investors that it has a grip on music costs for the next few years.
The streaming music service has been planning on a non-traditional public offering, where it will just sell its shares directly to the public, instead of going through Wall Street banks, for some time, and has been targeting a late 2017/early 2018 date.
Now it should be ready to go.
Warner announced the deal via social media. Here’s the Instagram version of the press release:
Good news for music lovers: @spotify and Warner Music Group have renewed their global partnership. Ole Obermann, Chief Digital Officer, WMG, commented on the renewed partnership with Spotify: “It’s taken us a while to get here, but it’s been worth it, as we’ve arrived at a balanced set of future-focused deal terms. Together with Spotify, we’ve found inventive ways to reinforce the value of music, create additional benefits for artists, and excite their fans all over the world. Even with the current pace of growth, there’s still so much potential for music subscription to reach new audiences and territories.”
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