Rumor: Spotify is considering IPO

Spotify is rumored to be planning to go public in the third quarter of this year. The streaming audio service would have conversations with banks for this, although these would have an informal character for the time being.

Quartz reports this based on unspecified sources. Spotify is said to have started exploring the options for an IPO in the United States. Talks would be held with banks to explore the possibilities for this. According to Quartz, the talks are not yet at an advanced stage, but Spotify is said to have planned to start issuing shares in the third quarter of this year. However, it is possible that the plans will be postponed if market conditions turn out to be negative.

Many banks would be interested in supervising Spotify’s IPO. Because the streaming music service mainly depends on subscription fees and not on advertisements for its income, the company could do well on the stock exchange, the sources of Quartz reason.

Spotify has been experiencing a lot of competition from other streaming music services lately. These include, for example, Rdio, Google’s All Access and Deezer. In addition, Apple is said to be working on a music streaming service with a similar revenue model as Spotify.