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At this scale, debt is always bad option. There are not many company in the world which can repay more than 1billion$ with interest. The demand of debt at this
by iamgopal 11y ago
At this scale, debt is always bad option. There are not many company in the world which can repay more than 1billion$ with interest. The demand of debt at this level is so low, that either they should be doing it at pretty low interest rates or not at all.
- jalonso510 11y agoIt's debt but it's pretty clearly meant to convert into equity not be re-paid.
- toomuchtodo 11y agoSpotify will never be worth enough for that converted equity to be worth the cost.
- jalonso510 11y agoWell if they ever IPO at all, it sounds like these guys get 20% off the IPO price so have a decent gain built in no matter what Spotify is worth at that time. Assuming the description in the article is correct.