The music streaming giant’s IPO is scheduled to hit the market either late this year or in early 2018.
Ahead of its U.S. stock market listing, in a significant development Spotify has disclosed that it has renewed its global licensing partnership with Warner Music Inc. The development marks its last big music royalty deal ahead of its IPO.
In July, sources had revealed that the music streaming company was close to a new licensing deal with Warner Music.
“It’s taken us a while to get here, but it’s been worth it, as we’ve arrived at a balanced set of future-focused deal terms,” said Ole Obermann, Warner Music Group’s chief digital officer, in a post on Instagram.
A spokesman for Spotify has confirmed the development in an email, without disclosing the financial terms of the deal.
The move follows Spotify signing licensing deals with Vivendi’s Universal Music Group and Sony Music Entertainment, two huge labels earlier this year.
“Even with the current pace of growth, there’s still so much potential for music subscription to reach new audiences and territories,” said Obermann.
As per a source, Spotify’s IPO is likely to happen either towards the end of this year or the beginning of next year.
The company has hired Goldman Sachs and Morgan Stanley to advise it on its stock market listing strategy, said a source.
In July, the music streaming company which has fended over rivals such Apple Music, said it had 60 million paying subscribers and had added 10 million subscribers in less than five months.
In June, Apple had reported 27 million, up from 20 million in December, in its subscribers base.