The value seems OK if there is a good IPO (>10 billion) in the near future. I think the issue is now Spotify largely HAVE to IPO quickly and successfully. This is a big risk as with the current bear market that could easily deteriorate further creating a situation where the business would be better waiting for for a few years. And they are now cornered into not taking an IPO, or not taking it at great cost.
And I wouldn't put it past Goldman to use background influence to delay the expected listing to get themselves ever favorable terms by adding a few years to the process. I'd be interested to know the cap on the share price discount that goes up 2.5% every extra six months. And what would happen in a private buyout? Is this deal a poison pill against not listing from management? Possibly management want to ensure this listing happens largely no-matter what markets do.
Maybe I'm a skeptical person but it seems there could be rationale to this deal we dont see. I know Spotify are struggling to compete on the growth of paid subscribers. Maybe this is managements way to get a profitable exit before the struggling financials really show and markets get more rational on unicorns.
And I wouldn't put it past Goldman to use background influence to delay the expected listing to get themselves ever favorable terms by adding a few years to the process. I'd be interested to know the cap on the share price discount that goes up 2.5% every extra six months. And what would happen in a private buyout? Is this deal a poison pill against not listing from management? Possibly management want to ensure this listing happens largely no-matter what markets do.
Maybe I'm a skeptical person but it seems there could be rationale to this deal we dont see. I know Spotify are struggling to compete on the growth of paid subscribers. Maybe this is managements way to get a profitable exit before the struggling financials really show and markets get more rational on unicorns.