Spotify wants to disrupt Wall Street like it did the music industry

Iā€™m a big fan of music streaming service Spotify. Even more so after the disruptive approach being followed in its forthcoming US stock market listing.

The firm is breaking all the rules in its IPO. It is relying on just three banking advisors and has completely avoided any underwriting. As a result, it has capped the cost of its listing at a level which is just a third (Snap) and one tenth (AliBaba) what it set back other high profile internet listings.

Spotify will also give guidance on profit projections models directly to its investors, avoiding the usual practice where bank-employed research analysts advise on listing prices.

Its innovative approach has sent shockwaves through investment banking circles. With Uber and AirBnB readying for their own US listings, what Warren Buffett describes as the Super Helpers, aren’t amused. Nobody likes being disrupted. Especially not those used to a privileged existence.

Visited 184 times, 1 visit(s) today