Music Business

Spotify Holds Fake Earnings Calls In Preparation For IPO [report]

SPOTIFYSpotify 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.

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