Spotify might soon join competitor Pandora as a public company, a new report claims.
Spotify has held informal talks with banks and could be marching towards an initial public offering (IPO) set for this fall, Quartz reported on Thursday, citing people who claim to have knowledge of its plans. Formal talks with major banks that could eventually become underwriters on the deal could start in April, Quartz's sources say.
Spotify, which started in Europe and now offers its service worldwide, including in the US, offers music streaming and subscription services. As a private company, Spotify doesn't reveal revenue figures, but the company has said that its growth is steady.
According to Quartz, Spotify has quietly made moves to inch closer to an IPO, including taking out a $200 million line of credit from major banks that could eventually become its underwriters.
Web companies have been hitting Wall Street fast and furious over the last few years. Success so far, however, has been a mixed bag. After some difficulties, Facebook shares are now soaring. King, a digital-entertainment company best known for Candy Crush, however, watched its shares fall soon after they went public on Wednesday.
According to Quartz's sources, Spotify could fare well on Wall Street, due mainly to the company's revenue coming in large part from subscriptions, rather than advertising.
Spotify declined CNET's request for comment on the report.