As Spotify shares began trading on the New York Stock Exchange, Music Week rounded up the music business reaction to its direct listing.
The stock eventually opened at $165.90 (£118) today - valuing the firm at $29.5 billion (£21bn) - more than a quarter higher than the $132 guide price set by NYSE on Monday. Based on the first day’s trading, the market valuation for the streaming giant is $26.5 billion (£18.8 billion). That’s slightly ahead of the widely predicted $25 billion (£17.8 billion) - and not too far off the market capitalisation of €27.1 billion (£23.6 billion) for Vivendi Universal.
Sammy Andrews, Deviate
I’d be surprised if we see any labels sell their equity any time soon. A company that has been instrumental in bringing our industry back to growth needs a show of faith from the labels right now. Tho if calculations are correct Sony are currently sat on $1.63 billion... $SPOT— Sammy Andrews (@sammyandrews) April 3, 2018
thinking abt buying each of our artists a share of spotify so they'll get closer to the amount they deserve to be paid— Father/Daughter Records (@father_daughter) April 3, 2018
Get Cape. Wear Cape.Fly
An $18b dollar IPO would be a real test of the streaming model. By what everyone has said for years, artists should expect a massive increase in royalty rates. https://t.co/gS0wVzpHwi— Get Cape. Wear Cape. Fly (@forgetcape) April 3, 2018
Kieron Donoghue, Humble Angel Records
Spotify opens at a value of $30 billion then ???? I remember when they had to delay their US launch by a couple of years as Warner wouldn’t sign a deal with them. Lols.— Kieron Donoghue (@kierondonoghue) April 3, 2018
Paul Pacifico, AIM
Congrats to all @spotify on a successful direct listing @NYSE #musicischanging— Paul Pacifico (@allstarspaul) April 3, 2018