Spotifty (spot) And The Interesting Float Option

Discussion in 'General Trading Discussion' started by longtermbull, Apr 3, 2018.

Page 1 of 2
    Apr 3, 2018
  1. longtermbull

    longtermbull Administrator Staff Member

    Joined:
    Nov 2016
    Posts:
    1,720
    Likes Received:
    20
    It seems that Spotify (SPOT) has not made friends with US brokers having decided to list directly on the NYSE and ignore the traditional IPO route. The shares have been marked up from an indictive price of $132 to just over $160 which values the company at just shy of $30b.

    Was the company right to list directly and avoid paying out hundreds of millions of dollars in fees?
     
    longtermbull, Apr 3, 2018
    longtermbull, Apr 3, 2018
    #1
    2. Apr 4, 2018
  2. gowiththeflow

    gowiththeflow Senior Investor

    Joined:
    Jul 2017
    Posts:
    1,041
    Likes Received:
    9
    Interesting that Spotify chose to take this unconventional route to market - effectively sticking two fingers up to the establishment and the IPO gravy train which has fed advisors for many many years. Maybe we will see others following a similar route?
     
    gowiththeflow, Apr 4, 2018
    gowiththeflow, Apr 4, 2018
    #2
    • Like Like x 1
    3. Apr 6, 2018
  3. Chartman

    Chartman Senior Investor

    Joined:
    Sep 2017
    Posts:
    703
    Likes Received:
    8
    Chartman, Apr 6, 2018
    Chartman, Apr 6, 2018
    #3
    4. Apr 7, 2018
  4. longtermbull

    longtermbull Administrator Staff Member

    Joined:
    Nov 2016
    Posts:
    1,720
    Likes Received:
    20
    Sony still has a large stake in Spotify - in monetary terms - so not a big issue to me. The greatest challenge to Spotify will come when they negotiate the next royalties agreement with the big music players.
     
    longtermbull, Apr 7, 2018
    longtermbull, Apr 7, 2018
    #4
    5. Apr 8, 2018
  5. gowiththeflow

    gowiththeflow Senior Investor

    Joined:
    Jul 2017
    Posts:
    1,041
    Likes Received:
    9
    Seems to me that the music companies need Spotify as much as Spotify needs them? There must surely be some margin for both sides when they next sit down and discuss royalties? It is obvious that everyone benefits when you have millions of music fans signed up to the same service - effectively in one room. It is far easier to sell off one platform than off different ones for different music companies.
     
    gowiththeflow, Apr 8, 2018
    gowiththeflow, Apr 8, 2018
    #5
    6. Oct 29, 2019
  6. gowiththeflow

    gowiththeflow Senior Investor

    Joined:
    Jul 2017
    Posts:
    1,041
    Likes Received:
    9
    So the company loses the CFO and the shares rally lol

    [​IMG]

    We do live in a bizarre world lol
     
    gowiththeflow, Oct 29, 2019
    gowiththeflow, Oct 29, 2019
    #6
    7. Nov 15, 2019
  7. longtermbull

    longtermbull Administrator Staff Member

    Joined:
    Nov 2016
    Posts:
    1,720
    Likes Received:
    20
    Does this business model really work in the long term? Or is the company simply opening the door for individual music companies to go it alone in the future?
     
    longtermbull, Nov 15, 2019
    longtermbull, Nov 15, 2019
    #7
    8. Nov 26, 2019
  8. Buyonthedips

    Buyonthedips Senior Investor

    Joined:
    Feb 2018
    Posts:
    504
    Likes Received:
    1
    Not sure about the business model longer term - if they can maintain it then surely they will become the go to music plaform. However, if their music company partners were to branch out on their own, where would that leave Spotify?
     
    Buyonthedips, Nov 26, 2019
    Buyonthedips, Nov 26, 2019
    #8
    9. Nov 26, 2019
  9. longtermbull

    longtermbull Administrator Staff Member

    Joined:
    Nov 2016
    Posts:
    1,720
    Likes Received:
    20
    I think there is far too much hot air with this one - not got very solid foundations in my book.
     
    longtermbull, Nov 26, 2019
    longtermbull, Nov 26, 2019
    #9
    10. Dec 19, 2019
  10. Chartman

    Chartman Senior Investor

    Joined:
    Sep 2017
    Posts:
    703
    Likes Received:
    8
    Not a million miles off its all time high - what a strange market we live in :)
     
    Chartman, Dec 19, 2019
    Chartman, Dec 19, 2019
    #10
Page 1 of 2
Tags:

Share This Page