Spotify has filed to go public

Music streaming service Spotify is going public and they’ve just unveiled their filing.

The documents state that it is targeting a $1 billion IPO, but the company actually plans to go public without the fundraising event.

The filing shows that Spotify had 4.09 billion Euros in revenue last year, compared to 2.95 billion Euros the year before. 2015 saw 1.94 billion Euros in revenue.

Losses for last year were 1.2 billion Euros, which compares to 539 million Euros the year before.

The company is going public under the ticker of “SPOT,” on the New York Stock Exchange.

There are some key risks to the business, which Spotify acknowledges in its risk factors.

Some are concerned that Spotify is beholden to music rights owners like record labels who could try to jack up their rates during periodic re-negotiations if they think the service becomes too profitable. There are also administrative agencies like the Copyright Royalty Board and trade groups like the American Society of Composers, Authors and Publishers who could seek to increase the rates Spotify has to pay. Control of rights is heavily concentrated within a few major labels and organizations. Universal Music Group, Sony Music Entertainment, Warner Music Group, and Merlin hold rights for music that accounted for 87% of Spotify’s streams in 2017. They could potentially wreck Spotify’s margins by demanding higher rates or deprive it of content in ways that would drive away listeners.

Developing story, check back for updates

Featured Image: Bryce Durbin/TechCrunch

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