What method is spotify considering for going public

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Reference no: EM131869294

Spotify AB, the music-streaming service, is preparing to go public this year. But it may not create the payday Wall Street is used to (WSJ, April 9, 2017 "Spotify finally readies and IPO...That's not an IPO" )

Questions:

1. According to The Wall Street Journal, what method is Spotify considering for going public?

2. What are the potential benefits and disadvantages of taking this approach? Do the benefits exceed the disadvantages for Spotify? How about for the typical firm? Explain.

3. What are the implications of Spotify's decision for investment banks, investment bankers, and those wanting to become investment bankers? Explain.

4. Why do you think Spotify issued $1 billion of convertible bonds with an interest rate that increases 1 percentage point every six months until the company goes public?

Reference no: EM131869294

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