A new report from Quartz claims Spotify is planning an IPO for as soon as this fall. The music-streaming company is apparently meeting with investment banks for early discussions, according to several sources “familiar with the process,” and may begin seriously pursuing a public offering as soon as next month.
Spotify declined to comment on the rumors, but several recent actions taken by the company point to a possible IPO. Most recently, the service bought up The Echo Nest, which creates the algorithms used by Spotify and most of its competitors to create personalized online radio stations. The company also received a $200 million credit line earlier this month from several major investment banks including Morgan Stanley and Goldman Sachs, giving these lenders a better chance of handling a piece of Spotify’s upcoming IPO.
The Swedish company helped establish on-demand music streaming as an alternative to Pandora-style Internet radio and more traditional digital music sales. Despite Spotify’s success, however, the company still trails behind Pandora’s massive users base and was recently surpassed by Apple’s iTunes Radio service. An IPO could give Spotify the cash it needs to take on massive online radio services while also fighting off smaller on-demand streamers.
For now there’s no official confirmation that Spotify is pursuing an IPO, but if the company hopes to go public this fall it won’t be long before it’s forced to go public with the news.