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How many shares do we think it would take to purchase a major record label at this point? What about a perpetual license to their content (since buying a label
by sailfast 9y ago
How many shares do we think it would take to purchase a major record label at this point? What about a perpetual license to their content (since buying a label could be seen as anti-competitive)? This would certainly help avoid some of the down-side risk to the business. That said, their IPO didn't exactly help the company clear the working capital they'd need to do this.
- subpixel 9y agoNot only are there numerous labels with "must have" back catalogs, they now all know exactly how much money Spotify has.
- bogomipz 9y agoWell there's no such things a "major record label" anymore. When people say "the Big 3" each of those three is global conglomerate. The result of years and years of consolidation. Using the smallest of these 3 Time Warner Music Group, the company did $2.87 billion in revenue in 2013[1]. Let's say that Warner was actually interested in a sale. Let's say that the multiple they were looking for was 5x. Where is Spotify going to get the 15 billion dollars for that sale? Certainly not from this direct listing. And even if they had that cash what happens when you buy a 3,500 employee mega corporation? You actually have to run it and run it well. [1] https://en.wikipedia.org/wiki/Warner_Music_Group https://en.wikipedia.org/wiki/Warner_Music_Group
- indemnity 9y agoWow, the big three put together did a laughable amount of revenue compared to an average tech major, surprised they haven’t been bought yet. Where does the fear of these labels come from? Why doesn’t someone just buy them for the catalog, and fire everyone in the dying parts of the business? De-risk your revenue model, and gain leverage vs other streaming services.