Online music streaming service Spotify is fuelling speculation that it could be getting ready for an initial public share offer (IPO) by recruiting a specialist in financial reporting based in the U.S. This would see it follow in the footsteps of social media giants Facebook and Twitter.
The rumours follow a job advertisement posted on the Swedish firm’s website and LinkedIn page stating that the successful candidate would be required to:
“…prepare the company for SEC (Securities and Exchange Commission) filing standards. Set up all reports necessary to be SEC compliant.”
Thus far, Spotify has declined to comment on these rumours that an IPO is just over the horizon by claiming that it is recruiting financial reporting specialists simply to:
“…keep our financial reporting in order and up to global standards.”
In the past, founder and CEO Daniel Ek has openly dismissed the suggestion that Spotify will be listed for public shares in Swedish media, but investors are suggesting that Ek may have had a change of heart, will undertake considerable reputation management actions and prepare for IPO.
Should this move go ahead, the value of Spotify is estimated to soar to around $8bn and could trigger a surge in other tech companies also offering stock to the public. However, Spotify will no doubt be aware that even internet sensations like Facebook and Twitter have had teething problems along the way with this model.
Spotify raised $250m last November, ensuring that it is one of the most proficient capitalised start-ups globally.