As of this week, Spotify is trading on the stock market and it’s the only thing the industry is talking about. If you should find yourself caught in a conversation on the topic, here are a few talking points that will make it sound you know what you’re talking about.
1. Spotify is unbelievably freakin’ HUGE
To put that into perspective, Spotify is worth more than Universal, Sony and Warner combined. In fact, it may be bigger than the entire music industry. Call it the world’s most valuable music company. It’s also bigger than companies like Hewlett-Packard, General Mills and Yum Brands (Pizza Hut, Taco Bell, KFC, etc.)
2. The major labels made out like bandits
Unless you were plugged into Spotify’s financials, you wouldn’t have known that the major labels had equity positions in Spotify. Sony’s stake is $1.5 billion. You have to wonder how the relationship between Spotify and the majors may change going forward…
3. Spotify shares took a dump on day two, but…
4. The NYSE made a stupid mistake.
When a new company debuts on the NYSE, the flag of its nation of origin is flown. In a big oopsie, someone ordered that the Swiss flag be hung, not the Swedish one.
5. Part of the reason this offering was such a success is that Wall Street is worried
Spotify’s IPO/DPO is one of the few huge offerings in sight and the guys in suspenders are concerned. Are the good times nearing an end? The New York Times takes a look. If you’re into reading what financial analysts are thinking, go here.