Music streaming service Spotify, most recently valued at $13 billion, will be the first major company to carry out a direct listing on the New York Stock Exchange when it goes public later this year or early next year, two sources familiar with the situation said on Friday.

The move would be the biggest test yet for the direct listing process, which for companies willing to list shares without raising capital eliminates the need for a Wall Street bank or broker to underwrite an initial public offering (IPO) along with many associated fees.

If successful, it could change the way companies approach selling shares to the public.

The Swedish technology firm is working with investment banks Morgan Stanley, Goldman Sachs Group Inc and Allen &amp; Co to advise them on the process, the sources said.

Spotify, the New York Stock Exchange, Morgan Stanley and Goldman declined comment. Allen &amp; Co did not immediately respond to a request for comment.

In a traditional IPO, investment bank underwriters sell new shares of a company to the public at a price they determine based on investor feedback. The underwriters leading this process are backed by an IPO syndicate, sometimes comprising more than a dozen banks, which share the responsibility of selling and allocating shares to investors.

In a direct listing, a company does not raise money by offering new shares for sale, but instead makes existing shares immediately available to the public, meaning employees and investors can buy and sell as they wish. That dispenses with the need for banks to market and sell the company&#39;s shares.

Spotify&#39;s decision to side-step underwriters could be a hit to investment banks that rely on fees from marquee listings.

Proceeds from IPOs fell 40 percent last year from 2015. Technology IPOs, often a large chunk of the market, were down 56 percent, according to Thomson Reuters data.

Last year Spotify raised $1 billion in convertible debt from private equity firm TPG Capital Management LP and hedge fund Dragoneer Investment Group. The round came with a provision allowing TPG and Dragoneer to convert their debt into equity at a discount of 20 percent or more to the offering share price of an IPO, depending on when the company goes public.

It was unclear how that stipulation would be handled in a direct listing.

Direct listings are not without risk. Investment banks seek to set an IPO price that fits demand while leaving room for the company&#39;s shares to rise further in the market. Without this guidance, a company&#39;s stock price is more exposed to gyrations.

There is also no &quot;lock-up&quot; period to prevent early-stage investors and employees from selling shares in the months following a listing. Without that, a stock could experience heavy turnover and price fluctuations just as the company is getting its public market footing.

Direct listings also do not eliminate all Wall Street costs. Investment banks still advise companies on how to get their financials in order and articulate why they are a good investment, even if they do not get involved in building materials to show investors at so-called roadshows.

Examples of companies of Spotify&#39;s size that have directly listed are scant, though Freddie Mac did so in 1989.

A direct listing for a large company such as Spotify may be hard to replicate, industry sources said. Companies less well-known would likely need bankers to market shares, while Spotify can rely on consumer familiarity and media exposure.

Spotify, which has yet to post a profit as it expands in markets worldwide and builds new offices in New York, lost 173 million euros ($189 million) in 2015, according to the latest figures disclosed by its Luxembourg-based holding company.

In recent months, it has sought to build up its service by striking deals with music labels. In April, it announced a licensing deal with Universal Music Group Inc that could make the streaming platform more attractive to its top-selling artists, including Taylor Swift, Adele, Lady Gaga, Coldplay and Kanye West, by letting them release albums exclusively to premium users.

Spotify hopes to strike deals with Warner Music Group and Sony Music in the run-up to the IPO, one of the sources said.

(Reuters)

The move would be the biggest test yet for the direct listing process

Music streaming service Spotify, most recently valued at $13 billion, will be the first major company to carry out a direct listing on the New York Stock Exchange when it goes public later this year or early next year, two sources familiar with the situation said on Friday. The move would be the biggest test yet for the direct listing process, which for companies willing to list shares without raising capital eliminates the need for a Wall Street bank or broker to underwrite an initial public offering (IPO) along with many associated fees. If successful, it could change the way companies approach selling shares to the public. The Swedish technology firm is working with investment banks Morgan Stanley, Goldman Sachs Group Inc and Allen & Co to advise them on the process, the sources said. Spotify, the New York Stock Exchange, Morgan Stanley and Goldman declined comment. Allen & Co did not immediately respond to a request for comment. In a traditional IPO, investment bank underwriters sell new shares of a company to the public at a price they determine based on investor feedback. The underwriters leading this process are backed by an IPO syndicate, sometimes comprising more than a dozen banks, which share the responsibility of selling and allocating shares to investors. In a direct listing, a company does not raise money by offering new shares for sale, but instead makes existing shares immediately available to the public, meaning employees and investors can buy and sell as they wish. That dispenses with the need for banks to market and sell the company's shares. Spotify's decision to side-step underwriters could be a hit to investment banks that rely on fees from marquee listings. Proceeds from IPOs fell 40 percent last year from 2015. Technology IPOs, often a large chunk of the market, were down 56 percent, according to Thomson Reuters data. Last year Spotify raised $1 billion in convertible debt from private equity firm TPG Capital Management LP and hedge fund Dragoneer Investment Group. The round came with a provision allowing TPG and Dragoneer to convert their debt into equity at a discount of 20 percent or more to the offering share price of an IPO, depending on when the company goes public. It was unclear how that stipulation would be handled in a direct listing. Direct listings are not without risk. Investment banks seek to set an IPO price that fits demand while leaving room for the company's shares to rise further in the market. Without this guidance, a company's stock price is more exposed to gyrations. There is also no "lock-up" period to prevent early-stage investors and employees from selling shares in the months following a listing. Without that, a stock could experience heavy turnover and price fluctuations just as the company is getting its public market footing. Direct listings also do not eliminate all Wall Street costs. Investment banks still advise companies on how to get their financials in order and articulate why they are a good investment, even if they do not get involved in building materials to show investors at so-called roadshows. Examples of companies of Spotify's size that have directly listed are scant, though Freddie Mac did so in 1989. A direct listing for a large company such as Spotify may be hard to replicate, industry sources said. Companies less well-known would likely need bankers to market shares, while Spotify can rely on consumer familiarity and media exposure. Spotify, which has yet to post a profit as it expands in markets worldwide and builds new offices in New York, lost 173 million euros ($189 million) in 2015, according to the latest figures disclosed by its Luxembourg-based holding company. In recent months, it has sought to build up its service by striking deals with music labels. In April, it announced a licensing deal with Universal Music Group Inc that could make the streaming platform more attractive to its top-selling artists, including Taylor Swift, Adele, Lady Gaga, Coldplay and Kanye West, by letting them release albums exclusively to premium users. Spotify hopes to strike deals with Warner Music Group and Sony Music in the run-up to the IPO, one of the sources said. (Reuters)

Spotify to launch direct listing on NYSE: Sources

Pop singer Ed Sheeran on Friday broke all-time records on Spotify as fans rushed to hear two songs from his upcoming album.

The British singer-songwriter&#39;s &quot;Shape of You&quot; became the top song ever for a single week on the world&#39;s largest streaming website, with 52,359,013 listens through Thursday.

&quot;Shape of You&quot; shattered the previous record for a single week set by Canadian rapper Drake&#39;s &quot;One Dance&quot; in May.

Sheeran&#39;s track also broke the record for streams in a first week set in 2015 by Adele with her ballad &quot;Hello.&quot;

Both &quot;Shape of You&quot; and Sheeran&#39;s other new track, &quot;Castle on the Hill,&quot; topped previous feats for first-day streams when he released them on January 6.

&quot;Shape of You,&quot; a minimalist dance tune about picking up a woman at a bar, and the rockier &quot;Castle on the Hill&quot; will both feature on Sheeran&#39;s upcoming third album, &quot;Divide.&quot;

The album, which like Sheeran&#39;s previous two albums is named after a mathematical symbol, will come out on March 3.

(AFP)

Sheeran's 'Shape of You' became the top song ever for a single week with 52,359,013 listens on Spotify

Pop singer Ed Sheeran on Friday broke all-time records on Spotify as fans rushed to hear two songs from his upcoming album. The British singer-songwriter's "Shape of You" became the top song ever for a single week on the world's largest streaming website, with 52,359,013 listens through Thursday. "Shape of You" shattered the previous record for a single week set by Canadian rapper Drake's "One Dance" in May. Sheeran's track also broke the record for streams in a first week set in 2015 by Adele with her ballad "Hello." Both "Shape of You" and Sheeran's other new track, "Castle on the Hill," topped previous feats for first-day streams when he released them on January 6. "Shape of You," a minimalist dance tune about picking up a woman at a bar, and the rockier "Castle on the Hill" will both feature on Sheeran's upcoming third album, "Divide." The album, which like Sheeran's previous two albums is named after a mathematical symbol, will come out on March 3. (AFP)

Ed Sheeran breaks Spotify records with new song

The Weeknd has ended Drake&#39;s long reign as king of Spotify, with the singer topping the rapper in monthly listeners on the world&#39;s leading streaming service.

The Weeknd, whose new album &quot;Starboy&quot; came out November 25, had close to 37.5 million listeners in November -- more than one-third of all Spotify users.

He edged out Drake, a fellow Torontonian who supported The Weeknd early in his career, who had just under 36 million monthly listeners.

Spotify, releasing data late Saturday, also confirmed that &quot;Starboy&quot; broke the record for streams in its first week, with listeners playing it 223 million times.

&quot;Starboy,&quot; released just one year after The Weeknd&#39;s breakthrough album &quot;Beauty Behind the Madness,&quot; is a sprawling work of R&amp;B and electronica on which the singer collaborates with elusive French duo Daft Punk.

Drake had been the biggest artist in terms of monthly listeners since May after the rapper released his long-awaited album &quot;Views,&quot; featuring viral hits such as &quot;One Dance&quot; and &quot;Hotline Bling&quot;.

Spotify, in earlier figures for 2016 so far, said that Drake was the most-streamed artist for a second straight year, a ranking which does not change.

Drake&#39;s success on Spotify comes even though he has a close relationship with rival Apple, through which he released &quot;Views&quot; exclusively for its first week.

(AFP)

His new album 'Starboy' which came out on November 25, had close to 37.5 million listeners in November, more than 1/3 of all Spotify users

The Weeknd has ended Drake's long reign as king of Spotify, with the singer topping the rapper in monthly listeners on the world's leading streaming service. The Weeknd, whose new album "Starboy" came out November 25, had close to 37.5 million listeners in November -- more than one-third of all Spotify users. He edged out Drake, a fellow Torontonian who supported The Weeknd early in his career, who had just under 36 million monthly listeners. Spotify, releasing data late Saturday, also confirmed that "Starboy" broke the record for streams in its first week, with listeners playing it 223 million times. "Starboy," released just one year after The Weeknd's breakthrough album "Beauty Behind the Madness," is a sprawling work of R&B and electronica on which the singer collaborates with elusive French duo Daft Punk. Drake had been the biggest artist in terms of monthly listeners since May after the rapper released his long-awaited album "Views," featuring viral hits such as "One Dance" and "Hotline Bling". Spotify, in earlier figures for 2016 so far, said that Drake was the most-streamed artist for a second straight year, a ranking which does not change. Drake's success on Spotify comes even though he has a close relationship with rival Apple, through which he released "Views" exclusively for its first week. (AFP)

The Weeknd ends Drake's reign as Spotify king

How have Barack Obama&#39;s musical tastes changed in his last year in the White House? Judging from his playlists, he is getting into more indie rock.

Obama&nbsp;on Thursday&nbsp;for the second year in a row released summer playlists on streaming service Spotify, revealing what&#39;s on his speakers as he relaxes with his family on an annual holiday to tony Martha&#39;s Vineyard.&nbsp;Like the previous year, Obama&#39;s two playlists,&nbsp;one for daytime and one for nighttime listening,&nbsp;have plenty of classics including songs from Billie Holiday, Nina Simone, Miles Davis and The Beach Boys.

But he also showed a taste for indie rock this year. He listed &quot;Elevator Operator&quot; by Courtney Barnett, the Australian songwriter who has recently built a strong if niche following with her droll lyricism.&nbsp;Obama also picked &quot;Home&quot; by Edward Sharpe and the Magnetic Zeros, indie rockers who incidentally were prominent campaigners for former Democratic presidential contender Bernie Sanders. 
 
&nbsp;

<div class="twitter-block">
<blockquote class="twitter-tweet" data-lang="en">
Been waiting to drop this: summer playlist, the encore. What&#39;s everybody listening to? <a href="https://t.co/mqh1YVrycj">pic.twitter.com/mqh1YVrycj</a>
&mdash; President Obama (@POTUS) <a href="https://twitter.com/POTUS/status/763744742072913920">August 11, 2016</a></blockquote>
<script async src="~/platform.twitter.com/widgets.js" charset="utf-8" type="text/javascript"></script></div>

 
While most of Obama&#39;s musical choices steered clear of politics, an exception was &quot;Forever Begins&quot; by the Chicago rapper Common, a track produced by Kanye West that delves into the civil rights struggle and touches on gun violence.&nbsp;The president also chose Fiona Apple&#39;s 1997 hit &quot;Criminal&quot;, a song often interpreted as feminist with its theme of male fragility in the face of female sexuality.

Obama did not confine his selections to US artists. He chose a track by Caetano Veloso, a prominent figure in Brazil&#39;s tropicalia movement and outspoken critic of the country&#39;s former military dictatorship.

Obama chose Veloso&#39;s version of &quot;Cucurrucucu Paloma&quot;, an often-covered Mexican song of longing that was popularised in part by Harry Belafonte, the US singer also active in leftist politics.&nbsp;Also on one of Obama&#39;s playlists was &quot;Me Gustas Tu&quot; by Manu Chao, the Parisian singer of Spanish descent known for his attacks on globalisation.

Other prominent artists whose tracks have Obama&#39;s ear include pop superstar Janet Jackson, reclusive R&amp;B sensation D&#39;Angelo, soul singer Janelle Monae and blues rocker Gary Clark Jr.&nbsp;Obama has often spoken of his love of discovering music and has invited artists to the White House, including the late pop icon Prince and politically conscious rapper Kendrick Lamar. 
 
 
Here are the playlists in full:&nbsp;

Obama&#39;s Summer Playlist: Daytime

&ldquo;LoveHate Thing&rdquo; &ndash; Wale

&ldquo;Smooth Sailin&#39;&rdquo; &ndash; Leon Bridges

&ldquo;Elevator Operator&rdquo; &ndash; Courtney Barnett

&ldquo;Home&rdquo; &ndash; Edward Sharpe and the Magnetic Zeros

&ldquo;Many the Miles&rdquo; &ndash; Sara Bareilles

&ldquo;Tightrope&rdquo; &ndash; Janelle Mon?e

&ldquo;Classic Man&rdquo; &ndash; Jidenna

&ldquo;So Ambitious&rdquo; &ndash; Jay Z feat. Pharrell

&ldquo;Me Gustas Tu&rdquo; &ndash; Manu Chao

&ldquo;Forever Begins&rdquo; &ndash; Common

&ldquo;The Man&rdquo; &ndash; Aloe Blacc

&ldquo;As We Enter&rdquo; &ndash; Nas &amp; Damian &ldquo;Jr. Gong&rdquo; Marley

&ldquo;Sinnerman&rdquo; &ndash; Nina Simone

&ldquo;U Got the Look&rdquo; &ndash; Prince

&ldquo;Rock Steady&rdquo; &ndash; Aretha Franklin

&ldquo;Good Vibrations&rdquo; &ndash; Beach Boys

&ldquo;Don&rsquo;t Owe You A Thang&rdquo; &ndash; Gary Clark Jr.

&ldquo;Man Like That&rdquo; &ndash; Gin Wigmore

&ldquo;II B.S. (edit)&rdquo; &ndash; Charles Mingus 
 
 
Obama&#39;s Summer Playlist: Night 
&nbsp;

&ldquo;If I Have My Way&rdquo; &ndash; Chrisette Michele

&ldquo;Espera&rdquo; &ndash; Esperanza Spalding

&ldquo;Tell It Like It Is&rdquo; &ndash; Aaron Neville

&ldquo;Alright&rdquo; &ndash; Ledisi

&ldquo;Trapped By A Thing Called Love&rdquo; &ndash; Denise LaSalle

&ldquo;Lady&rdquo; &ndash; D&rsquo;Angelo

&ldquo;So Very Hard to Go&rdquo; &ndash; Tower of Power

&ldquo;Midnight Sun&rdquo; &ndash; Carmen McCrae

&ldquo;Cucurrucuc? ?Paloma&rdquo; &ndash; Caetano Veloso

&ldquo;Green Aphrodisiac&rdquo; &ndash; Corinne Bailey Rae

&ldquo;I&rsquo;ll Be There for You / You&rsquo;re All I Need&rdquo; &ndash; Mary J. Blige / Method Man

&ldquo;Lover Man&rdquo; &ndash; Billie Holiday

&ldquo;Criminal&rdquo; &ndash; Fiona Apple

&ldquo;Acid Rain&rdquo; &ndash; Chance the Rapper

&ldquo;My Funny Valentine&rdquo; &ndash; Miles Davis

&ldquo;Do You Feel Me&rdquo; &ndash; Anthony Hamilton

&ldquo;I Get Lonely&rdquo; &ndash; Janet Jackson

&ldquo;Lean In&rdquo; &ndash; Lizz Wright

&ldquo;All Day Music&rdquo; &ndash; War

&ldquo;Say Yes&rdquo; &ndash; Floetry 
 
(AFP)

The US president listens to indie rock and classics like Nina Simone. Dabbles in politically conscious music like Chicago's Common and Kanye

How have Barack Obama's musical tastes changed in his last year in the White House? Judging from his playlists, he is getting into more indie rock. Obama on Thursday for the second year in a row released summer playlists on streaming service Spotify, revealing what's on his speakers as he relaxes with his family on an annual holiday to tony Martha's Vineyard. Like the previous year, Obama's two playlists, one for daytime and one for nighttime listening, have plenty of classics including songs from Billie Holiday, Nina Simone, Miles Davis and The Beach Boys. But he also showed a taste for indie rock this year. He listed "Elevator Operator" by Courtney Barnett, the Australian songwriter who has recently built a strong if niche following with her droll lyricism. Obama also picked "Home" by Edward Sharpe and the Magnetic Zeros, indie rockers who incidentally were prominent campaigners for former Democratic presidential contender Bernie Sanders. Been waiting to drop this: summer playlist, the encore. What's everybody listening to? pic.twitter.com/mqh1YVrycj — President Obama (@POTUS) August 11, 2016 While most of Obama's musical choices steered clear of politics, an exception was "Forever Begins" by the Chicago rapper Common, a track produced by Kanye West that delves into the civil rights struggle and touches on gun violence. The president also chose Fiona Apple's 1997 hit "Criminal", a song often interpreted as feminist with its theme of male fragility in the face of female sexuality. Obama did not confine his selections to US artists. He chose a track by Caetano Veloso, a prominent figure in Brazil's tropicalia movement and outspoken critic of the country's former military dictatorship. Obama chose Veloso's version of "Cucurrucucu Paloma", an often-covered Mexican song of longing that was popularised in part by Harry Belafonte, the US singer also active in leftist politics. Also on one of Obama's playlists was "Me Gustas Tu" by Manu Chao, the Parisian singer of Spanish descent known for his attacks on globalisation. Other prominent artists whose tracks have Obama's ear include pop superstar Janet Jackson, reclusive R&B sensation D'Angelo, soul singer Janelle Monae and blues rocker Gary Clark Jr. Obama has often spoken of his love of discovering music and has invited artists to the White House, including the late pop icon Prince and politically conscious rapper Kendrick Lamar. Here are the playlists in full: Obama's Summer Playlist: Daytime “LoveHate Thing” – Wale “Smooth Sailin'” – Leon Bridges “Elevator Operator” – Courtney Barnett “Home” – Edward Sharpe and the Magnetic Zeros “Many the Miles” – Sara Bareilles “Tightrope” – Janelle Mon?e “Classic Man” – Jidenna “So Ambitious” – Jay Z feat. Pharrell “Me Gustas Tu” – Manu Chao “Forever Begins” – Common “The Man” – Aloe Blacc “As We Enter” – Nas & Damian “Jr. Gong” Marley “Sinnerman” – Nina Simone “U Got the Look” – Prince “Rock Steady” – Aretha Franklin “Good Vibrations” – Beach Boys “Don’t Owe You A Thang” – Gary Clark Jr. “Man Like That” – Gin Wigmore “II B.S. (edit)” – Charles Mingus Obama's Summer Playlist: Night “If I Have My Way” – Chrisette Michele “Espera” – Esperanza Spalding “Tell It Like It Is” – Aaron Neville “Alright” – Ledisi “Trapped By A Thing Called Love” – Denise LaSalle “Lady” – D’Angelo “So Very Hard to Go” – Tower of Power “Midnight Sun” – Carmen McCrae “Cucurrucuc? ?Paloma” – Caetano Veloso “Green Aphrodisiac” – Corinne Bailey Rae “I’ll Be There for You / You’re All I Need” – Mary J. Blige / Method Man “Lover Man” – Billie Holiday “Criminal” – Fiona Apple “Acid Rain” – Chance the Rapper “My Funny Valentine” – Miles Davis “Do You Feel Me” – Anthony Hamilton “I Get Lonely” – Janet Jackson “Lean In” – Lizz Wright “All Day Music” – War “Say Yes” – Floetry (AFP)

Obama releases summer playlists on Spotify via Twitter

spotify

Spotify, News on Spotify, stories on Spotify, articles on Spotify, Spotify stories at Wion, Spotify news, Spotify latest news