This post was originally published on this site
Spotify co-founder Martin Lorentzon. Photo: Emma-Sofia Olsson/SvD/TT
A Spotify founder has denied rumours the world’s most famous music startup is planning to go public on the stock exchange – but was later corrected by the company’s own PR firm.
Rumours have been swirling for some time that the Swedish music streamer is considering registering its shares on the stock market, reported by, among others, the Wall Street Journal and the Financial Times.
But Martin Lorentzon, who founded the company together with fellow Swede Daniel Ek in 2008, denied the rumours in an interview with Swedish radio on Friday.
“We have not got anywhere at all and there are no plans, even if the media think it’s a lot of fun to write about. But that’s the media – you have to take it with a pinch of salt. I’m not saying it’s fake news, but half of what the media write is usually accurate and half is usually not,” he said.
“It is completely taken out of thin air.”
“It is not on the cards,” he added.
One of the rumours suggested last year that Spotify had raised around one billion dollars in investment loans, which could be converted into stock if the Stockholm-born business goes public.
Lorentzon declined to comment, but said that it was not confirmed whether or not any new major investors would join the company.
“I don’t know, it remains to be seen. Those are the kinds of discussions we’re having,” he told Swedish radio.
Spotity’s own PR company, Brunswick, contacted tech news site Breakit later on the same day, however, practically denying Lorentzon’s claims.
“Spotify is assessing different options moving forward. Entering the stock market is one such option, but no decisions have been made,” the PR firm wrote in a statement issued to Breakit.
Spotify has never been able to generate a net profit, with the majority of its turnover going to the rights holders such as artists, producers and record majors.
In April, the company announced it had signed a multi-year global licence agreement with Universal Music Group which, according to industry analysts, is expected to reduce the amount of money paid to the record major for rights, and would thereby enable it to generate its first profits.