Spotify has reportedly filed for its IPO in secret
Spotify has confidentially filed for its initial public offering, Axios reported on Wednesday.
The music-streaming service filed with the Securities and Exchange Commission at the end of December and is aiming to list in the first quarter, the report said.By filing in private, companies are able to test how interested investors are in buying their stock before going public with their intentions. This used to only be available to companies with less than $1 billion in revenue under the Jumpstart Our Business Startups Act, or JOBS Act. Last June, the SEC under Jay Clayton, the chairman appointed by President Donald Trump, expanded the privilege to all companies.
On Tuesday, Wixen Music Publishing hit Spotify with a $1.6 billion lawsuit for allegedly streaming thousands of songs without compensation. Spotify agreed in May to pay over $43 million to settle a proposed class action alleging it failed to pay royalties.