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How much are the investment bankers earning on this?

jedberg 9y ago
Edit: Apparently I was wrong, they still paid a bunch of bankers for advice, but technically they aren't making anything by skimming off the top like most IPOs. I think nothing. It's a direct sale, so the insiders (including the employees, not just the execs) get to sell however many shares they want directly to public shareholders. So the company doesn't make any money either, just the shareholders. I suppose at some point the company itself could sell shares, and then maybe a banker would get involved, but since it would already be publicly listed, I'm not sure they'd have to be.
- jonknee 9y ago
  They're actually making more from Spotify's direct listing than they did for Dropbox's full on IPO... So much for disrupting the business model! https://www.bloomberg.com/news/articles/2018-03-26/spotify-listing-disrupts-the-ipo-but-keeps-the-costs https://www.bloomberg.com/news/articles/2018-03-26/spotify-l...
- ProAm 9y ago
  Interesting, is this just to let shareholders cash out? Im surprised they would do this without making any (or at least a little) money on it given the track record. Seems risky when they are still beholden to the lables for the most part.
nfriedly 9y ago
I think it was somewhere around $30 million spent on bankers for the non-IPO. (Which I guess is less then what they would have spent on an actual IPO? Although in that case, the cash raised from the IPO would have paid for the banker expenses.) Edit: this is where I got the $30 million figure from: https://www.bloomberg.com/view/articles/2018-01-16/spotify-will-pay-banks-to-cut-out-the-banks https://www.bloomberg.com/view/articles/2018-01-16/spotify-w...
rb808 9y ago
$30 million was the original estimate - I haven't seen an update since. https://www.bloombergquint.com/markets/2018/01/16/spotify-will-pay-banks-to-cut-out-the-banks https://www.bloombergquint.com/markets/2018/01/16/spotify-wi...
deleted 9y ago
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jartelt 9y ago
$44-50 million based on one source: https://www.bloomberg.com/news/articles/2018-03-26/spotify-listing-disrupts-the-ipo-but-keeps-the-costs?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosprorata&stream=top-stories https://www.bloomberg.com/news/articles/2018-03-26/spotify-l...

Edit: Apparently I was wrong, they still paid a bunch of bankers for advice, but technically they aren't making anything by skimming off the top like most IPOs. I think nothing. It's a direct sale, so the insiders (including the employees, not just the execs) get to sell however many shares they want directly to public shareholders. So the company doesn't make any money either, just the shareholders. I suppose at some point the company itself could sell shares, and then maybe a banker would get involved, but since it would already be publicly listed, I'm not sure they'd have to be.

jonknee 9y ago
They're actually making more from Spotify's direct listing than they did for Dropbox's full on IPO... So much for disrupting the business model! https://www.bloomberg.com/news/articles/2018-03-26/spotify-listing-disrupts-the-ipo-but-keeps-the-costs https://www.bloomberg.com/news/articles/2018-03-26/spotify-l...
ProAm 9y ago
Interesting, is this just to let shareholders cash out? Im surprised they would do this without making any (or at least a little) money on it given the track record. Seems risky when they are still beholden to the lables for the most part.

nfriedly 9y ago

I think it was somewhere around $30 million spent on bankers for the non-IPO. (Which I guess is less then what they would have spent on an actual IPO? Although in that case, the cash raised from the IPO would have paid for the banker expenses.) Edit: this is where I got the $30 million figure from: https://www.bloomberg.com/view/articles/2018-01-16/spotify-will-pay-banks-to-cut-out-the-banks https://www.bloomberg.com/view/articles/2018-01-16/spotify-w...

rb808 9y ago

$30 million was the original estimate - I haven't seen an update since. https://www.bloombergquint.com/markets/2018/01/16/spotify-will-pay-banks-to-cut-out-the-banks https://www.bloombergquint.com/markets/2018/01/16/spotify-wi...

deleted 9y ago

[deleted]

jartelt 9y ago

$44-50 million based on one source: https://www.bloomberg.com/news/articles/2018-03-26/spotify-listing-disrupts-the-ipo-but-keeps-the-costs?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosprorata&stream=top-stories https://www.bloomberg.com/news/articles/2018-03-26/spotify-l...