Evidence that Spotify is gunning for an IPO is growing, with a new report pegging the second half of 2017 as the target date.
A story from Bloomberg today cites “five people familiar with the plan” who confirmed the timetable for the 10-year-old company to make its public debut.
That’s not entirely surprising. As we, and others, noted earlier, when Spotify raised its last round of debt, the terms were linked to an IPO. The company also hired a director of investor relations, making an IPO within the next year or so quite likely.
Still, as the Bloomberg story notes, Spotify continues to be unprofitable and faces challenges winning the hearts and minds of Wall Street investors. While the number of listeners and subscribers to the free service continues to climb, so do royalty payments to labels and artists.