MarketWatch
Spotify Sets Standard With Non-IPO
Tuesday, April 3, 2018,
By Sawyer Kamman
The music streaming service Spotify recently completed a direct listing task, which allows them to create shared liquidity. This move could be copied by other tech companies, as it allows startups who do not need cash to find a market for its shares. According to Whitman assistant professor , this could set a precedent for tech startups.
Park told Marketwatch that this is a “good, viable option,” for companies in this type of position. However, while this move can be copied by others, he says that direct listings may not be used by all tech companies moving forward.