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| Spotify worth close to $30bn as shares start trading | Spotify worth close to $30bn as shares start trading |
| (about 1 hour later) | |
| Shares in music streaming firm Spotify have surged after trading publicly for the first time on Tuesday in one of the year's most anticipated market debuts. | Shares in music streaming firm Spotify have surged after trading publicly for the first time on Tuesday in one of the year's most anticipated market debuts. |
| The stock opened at $165.90 (£118) - more than a quarter higher than the $132 guide price set by the New York Stock Exchange on Monday. | The stock opened at $165.90 (£118) - more than a quarter higher than the $132 guide price set by the New York Stock Exchange on Monday. |
| That values the Swedish firm at about $29.5bn - far more than the roughly $21bn value of Twitter. | That values the Swedish firm at about $29.5bn - far more than the roughly $21bn value of Twitter. |
| The shares later fell back to be trading at about $155. | |
| The company used an unconventional process to launch on public markets: instead of issuing new shares, early investors sold existing holdings. | The company used an unconventional process to launch on public markets: instead of issuing new shares, early investors sold existing holdings. |
| The decision gave the firm's early backers a chance to cash in on its growth. | The decision gave the firm's early backers a chance to cash in on its growth. |
| Traders huddled on the floor of the New York Stock Exchange on Tuesday morning, getting feedback from buyers and sellers to determine the price. | Traders huddled on the floor of the New York Stock Exchange on Tuesday morning, getting feedback from buyers and sellers to determine the price. |
| After the excitement of the launch, shares retreated, sliding below $160. | |
| Spotify, which started offering its music service in 2008 as an upstart music platform, is now available in 65 countries. | Spotify, which started offering its music service in 2008 as an upstart music platform, is now available in 65 countries. |
| It has added millions of users to its free-to-use ad-funded service in recent years, converting many of them to its more lucrative subscription service. | It has added millions of users to its free-to-use ad-funded service in recent years, converting many of them to its more lucrative subscription service. |
| It is now the global leader with 71 million paying customers, twice as many as Apple Music, but is still yet to make a profit. | It is now the global leader with 71 million paying customers, twice as many as Apple Music, but is still yet to make a profit. |
| Spotify posted a loss of €1.23bn last year despite making revenues of €4bn. | Spotify posted a loss of €1.23bn last year despite making revenues of €4bn. |
| Analysis: Kim Gittleson, New York Business Correspondent | Analysis: Kim Gittleson, New York Business Correspondent |
| Like an angsty teenager, Spotify has begrudgingly made its stock market debut. | Like an angsty teenager, Spotify has begrudgingly made its stock market debut. |
| The ten year old streaming music company eschewed the normal pomp that comes with a New York Stock Exchange listing, choosing not to ring the opening bell or even send Daniel Ek, Spotify's co-founder. | The ten year old streaming music company eschewed the normal pomp that comes with a New York Stock Exchange listing, choosing not to ring the opening bell or even send Daniel Ek, Spotify's co-founder. |
| Although a few traders sported vests with the Spotify logo and the traditional gigantic banner hung outside the NYSE building, most of the morning's activity was focused on a very unusual task: trying to figure out the opening share price. The process had started at 6:30 in the morning and continued for hours after the opening bell. | Although a few traders sported vests with the Spotify logo and the traditional gigantic banner hung outside the NYSE building, most of the morning's activity was focused on a very unusual task: trying to figure out the opening share price. The process had started at 6:30 in the morning and continued for hours after the opening bell. |
| The drawn-out process was a result of Spotify's decision to go public using an unusual strategy known as a direct listing that cut out the bankers and meant early investors and employees could immediately sell their shares. | The drawn-out process was a result of Spotify's decision to go public using an unusual strategy known as a direct listing that cut out the bankers and meant early investors and employees could immediately sell their shares. |
| When the music finally stopped, shares in Spotify started trading at $165.90, valuing the company at close to $30bn. | When the music finally stopped, shares in Spotify started trading at $165.90, valuing the company at close to $30bn. |
| That should net the company's early founders many millions of dollars. Presumably, to quote fellow Swede Robyn, they're somewhere else, still dancing on their own. | That should net the company's early founders many millions of dollars. Presumably, to quote fellow Swede Robyn, they're somewhere else, still dancing on their own. |