Financial Times: “Four takeaways from Spotify’s market debut”
Hot on the heels of Dropbox’s market debut; on April 3rd, Spotify, the music streaming innovator and Renovata client, hit the New York markets.
Spotify’s arrival was not guaranteed to be smooth: having disrupted (and possibly saved) the music business, Spotify has disrupted the IPO process too; opting for a “direct listing” without the assistance of an investment bank for financing, underwriting or market advice.
The Financial Times reports that there is much to learn from this innovative arrival to the market: not least that investors are more than capable of separating first-day jitters from long term sentiment.
Spotify ended the day up around 12%; there was no more volatility than expected, and above all investors voted for Spotify’s performance in developing a stable premium business model. As the FT reports, “Spotify’s solid market debut, and its $26.5bn end-of-day market value, indicates that investors are convinced, at least for now, that streaming works”.
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