The streaming music company is looking at going public as a direct listing by either late 2017 or early 2018, according to CNBC's sources.
Joining as a direct listing, instead of as an IPO like Snap did this year, means that Spotify wouldn't be setting an initial price for shares nor offering shares to investors before going public. Instead, Spotify would only let investors purchase company stock on the open market.
CNBC's sources note that Spotify is currently valued at $13 billion. The possible direct listing is being advised by Morgan Stanley, Goldman Sachs and Allen & Co., according to the sources.
A Spotify representative confirmed to CNET that the three financial companies have indeed been hired as advisers for the possibility of such listing, but didn't have information in regards to valuation or timing.
The report comes amid the rumor that Spotify might jump into the hardware business as noticed by a recent job posting. The service also unveiled Spotify Codes this month, a feature that makes it easier to share playlists or songs using QR-like codes.
Originally published May 12, 2:17 p.m. PT.
Update, 3 p.m. PT: Adds comment from Spotify.