Re:Spotify opens on NYSE, valuing company at almost $30B
by TAForObvReasons on Tuesday April 03, 2018 @01:35PM
(#16747054)
> this was a strange way to do it.
This was done partially because the company itself isn't raising money. If the company executives believed they would need a large cash cushion, they would have tried to raise some cash in the deal, so they must believe they can reverse course before the cash crunch
Re:Spotify opens on NYSE, valuing company at almost $30B
by zer00eyz on Tuesday April 03, 2018 @02:18PM
(#16747527)
It wasn't about raising money - they had their hand forced by the last round of debt/equity deal that they did:
https://www.recode.net/2018/1/3/16847786/spotify-tpg-tencent...
Not that it is a great article but honestly that looks like a very messy transaction. It also looks like Spotify got the raw end of that deal. The whole thing is just crazy and I'm not sure how anyone can make sense of those numbers.
Re:Spotify opens on NYSE, valuing company at almost $30B
by ikeaman on Tuesday April 03, 2018 @01:36PM
(#16747068)
I know they didn't go through a traditional IPO model, but from what I understand there's always a certain amount of days imposed by the SEC to restrict short selling on novel securities.
Re:Spotify opens on NYSE, valuing company at almost $30B
by myroon5 on Tuesday April 03, 2018 @03:48PM
(#16748424)
Found this idea interesting and looked into it and found this:
https://www.investopedia.com/ask/answers/05/062905.asp
Looks like it's allowed, but difficult
The going public part -- well that was foretold with their last round of financing (it was a condition) and this was a strange way to do it.
You may love the product but will it last is the question. If I were going to bet I would say that 5 years down the road someone buys it for pennies on the dollar or it goes bankrupt due to toxic debt.
I wonder what the short position is on it.