Spotify Holds Fake Earnings Calls In Preparation For IPO [report]
Spotify has held practice earnings calls this spring in preparation for an initial public stock offering (IPO), according to a new report. The practice earnings call was attended by Spotify investors and investment banks Morgan Stanley, Goldman Sachs, and Deutsche Bank who had extended a $200 million line of credit to the music streamer.
Banks often pitch loans to tech companies hoping to win an underwriting role in a future IPO.
Quartz, who broke today's story has already reported that Spotify is considering a public offering as early as this fall. The value of the offering could exceed $10 billion, according to some analysts.
Earlier this year Spotify acquired ubiquitous music analytics firm The Echo Nest; a move seen by some analysts as strengthening its portfolio before announcing a public stock offering. In February, a Spotify recruitment ad sought an External Reporting Specialist to "prepare the Company for international financial standards," as required by U.S. Securities and Exchange Commission (SEC) guidelines for a company planning an initial public stock offering. The original version of the ad also named the SEC, according to Reuters.