Published: Sat, January 06, 2018
Markets | By Rosalie Gross

New reports suggest Spotify is going public

New reports suggest Spotify is going public

Wixen claims that Spotify didn't obtain the composition rights in their deals, and is seeking damages of $150,000 per song, for over 10,000 songs. Wixen represents a catalogue of over 50,000 songs by artists such as The Doors, Rage Against the Machine, Tom Petty, Weezer, Neil Young, and more. As a result, it could launch on the New York Stock Exchange as soon as the first quarter of 2018.

An initial $43 Million settlement offer made by Spotify a year ago was rejected and now they face a much bigger lawsuit over the coming months.

The Swedish company proposed a $43m settlement to end a class action legal case brought against it by songwriters and publishers in May a year ago, who claimed it was failing to pay royalties and for using their songs without a licence. Spotify declined to comment on the story. By pursuing a direct listing, Spotify can skirt underwriting fees typically required for an IPO, though the move could hurt its shares because underwriters won't be evaluating or buoying the price.

The company was founded in 2006 and has pioneered legal streaming, which has become the music industry's biggest source of growth despite early scepticism. Spotify has maintained it wants to properly compensate for the music it streams, but has not always been able to find the data to identify rights holders.

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It is the latest lawsuit to hit the fast-growing streaming company.

The music-streaming service based in Stockholm filed with the Securities and Exchange Commission at the end of December, the report said.

Spotify is a leader in the digital music space with more than 140 million active users and 60 million paying subscribers.

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