Spotify hires four new directors ahead of expected float
Spotify has bolstered its board by recruiting four new directors as it prepares for a possible float later this year.
Among the appointments are former Walt Disney chief operating officer Tom Staggs and Shishir Mehrotra, a former executive at YouTube.
The other new directors are Cristina Stenbeck, the owner of Swedish investment company Kinnevik, and Padmasree Warrior, the chief executive of the US branch of electric car firm NIO.
Mr Staggs was widely tipped as a future Disney chief executive but abruptly left the company last year.
The appointments, which will require shareholder approval, come after Spotify announced last year that it had hired Netflix chief content officer Ted Sarandos to sit on its board.
The music-streaming company’s eventual float is one of the most anticipated events in the technology industry, and is expected to value the company at more than £8bn.
However, the company will reportedly choose an unconventional “direct listing”, meaning it will go public without selling any new shares. Such a move would allow existing investors to dispose of their stakes.
Earlier this month, it was reported that Spotify had hired Goldman Sachs, Allen & Co and Morgan Stanley to advise it on its listing.
The company signed a deal with Universal Music earlier this year that meant only paying subscribers would be allowed to listen to certain albums.
It came after years of resisting calls to put songs on its premium tier, and was seen as a key step in preparing the company for flotation.
As of March 2017, Spotify had more than 100m active users and more than 50m subscribers. Music streaming rose 65pc in the UK last year, and now makes up almost 40pc of music industry revenues.
Spotify declined to comment.
Courtesy telegraph