Spotify isn’t only here to stay, it’s here to mold the music industry’s future.
The streaming service giant, Spotify, that ostensibly saved the music industry just took their business model one step further: they’ve gone public. In a record setting stock market debut, Spotify’s shares opened as high as $165.95, making it the largest ever direct listing with a company valuation of $30-billion.
Listed on the New York Stock Exchange, the placement was slightly puzzling for some given the NASDAQ’s penchant for hosting tech-based companies. In a tweet from NYSE President, Thomas Farley explained, “People have asked me why @Spotify chose the @NYSE for this unique listing,” Farley wrote on Twitter. “The answer is simple: we excel at large, complex financial transactions like this. The NYSE market model allowed Spotify to confidently list their shares on the New York Stock Exchange.”
Spotify’s financial strength is a positive indicator of the music industry’s future, as the Swedish-based company is one of the main drivers of the industry’s wellbeing.