Spotify is likely gunning to list in Q1, though Axios suggests a $1.6 billion music-licensing lawsuit that Wixen Music Publishing filed against the company in the past week may complicate the timeline and the overall IPO process.
Spotify is expected to launch an IPO as a direct listing rather than a traditional offering of shares.
Spotify allegedly filed for its IPO in December, and will go directly to the New York Stock Exchange while bypassing numerous IPO conventions.
Spotify is valued at approximately $15 billion, and would therefore be the largest company to attempt a direct listing, and the first to do so on the New York Stock Exchange.
The company is the most successful in the music streaming business, with over 60m paying subscribers. Spotify declined to comment on the story.
This lawsuit couldn't have come at a worse time for Spotify, which is planning a stock market listing this year.
The suit alleges that the streaming giant failed to get the proper mechanical licences to "to reproduce and/or distribute musical compositions on its service". Artists have long vilified Spotify's compensation arrangement, arguing that its per-stream rates are too low and that it willfully neglects to seek out the right licenses. The case is Wixen Music Publishing, Inc. v Spotify USA.
According to the documents filed by Wixen, Spotify has approximately 30 million songs in its catalogue, and they allege that the company has infringed almost 6,300,000 of them, or around 21 per cent of its roster.