Spotify IPO Watch: Brexit’s Bubble Bursting Bang 

Hanging over a Spotify IPO is the $1 billion in convertible debt that the company recently borrowed from Goldman Sachs, Dragoneer Investment Group, and Texas Pacific Group (TPG is also a Pandora lender, coincidentally–if you believe in coincidences).  Let’s assume that loan is in dollars.

If you take into account the loan’s 5% interest rate and the value of the warrant coverage in the deal, Spotify is essentially paying credit card interest on $1 billion (that 5% rate escalates 1% every six months until it reaches 10%, or Spotify registers an IPO).

Source: Spotify IPO Watch: Brexit’s Bubble Bursting Bang – Artist Rights Watch

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Author: Paul Sweeting

Paul Sweeting is the founder and principal of Concurrent Media Strategies, LLC and editor of RightsTech.com

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