Music to somebody’s ears at least
Spotify – the international music streaming company based in Sweden, maybe making plans float on the UK stock market Q3 2014, it is widely rumoured. The reports centre around a story in the Financial Times (FT) earlier this month [March 2014] which said that Spotify had secured a new $200 million line of credit from Morgan Stanley – amongst others. That’s normally interpreted as a move that indicates anIPO is an imminent.
The impetus is that the move is following Spotify’s expansion into the USA.
Observers following Spotify say the company may be attractive to prospective investors because the bulk of Spotify’s earnings come from subscriptions rather than advertising.
That doesn’t take into account the fact that shares in King – makers of the mobile game – Candy Crush Saga dived after flotation.
Even though King’s revenues are mainly through players ‘topping’ up their gameplay by buying additional in-game benefits.
What puzzled GoMo News, however, was an extremely low number for Spotify’s total subscriber base.
Even Spotify says it was 24 million three months ago . So where the widely quoted figure of just six million users came from we can’t understand.