Music streaming company, Spotify has acquired online music and audio recording studio, Soundtrap. The company declines to give financial details of the deal. According to the news posted on the official website of the Stockholm-based company, Soundtrap allows its users to have an online music studio and create music together with other people in real time. Spotify further stated that “Soundtrap’s rapidly growing business is highly aligned with Spotify’s vision of democratizing the music ecosystem,”
Apart from expanding the reach, Spotify is also aiming to file its intention to float with United States regulators towards the end of this year to list in the first or second quarter next year, according to the sources. Spotify is also planning for its so-called direct listing on the New York Stock Exchange, allowing existing investors to sell shares without raising money from new ones, sources have previously told Reuters. The direct listing is also aimed at saving hundreds of millions of underwriting fees from investment banks. A successful listing could pave the way for other users with the help of France-based rival Deezer saying it could consider going public if Spotify is well received.
An investor survey led by technology investment and advisory firm GP Bullhound, which owns shares in Spotify estimated the company’s valuation could reach $50 billion in the coming few years. Investors and venture capitalists recently pointed to Spotify’s position as the “undisputed market leader” in music streaming, and to rapid growth in its paying users from 5 million to reach over 60 million in just 5 years.