Spotify price tag rises ahead of filing for NYSE listing: sources

STOCKHOLM (Reuters) - The value of music streaming service Spotify, which is planning a stock market listing, has grown around 20 percent to at least $19 billion in the past few months, outperforming U.S. and European tech indexes, sources familiar with the matter said.

The most recent private trades in the Swedish company have taken place at above $4,000 per share according to sources.

Salaries of employees at 25 top US tech companies:

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Salaries of employees at 25 top tech companies
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Salaries of employees at 25 top tech companies

Google

Average annual bonus: $32,478

Average sign-on bonus: $27,547

Average annual base salary: $136,000

Netflix

Average annual bonus: $0

Average sign-on bonus: $3,520

Average annual base salary: $206,000

Twitter

Average annual bonus: $120

Average sign-on bonus: $26,144

Average annual base salary: $149,000

Apple

Average annual bonus: $20,298

Average sign-on bonus: $27,201

Average annual base salary: $102,000

Facebook

Average annual bonus: $33,225

Average sign-on bonus: $45,708

Average annual base salary: $145,000

Oculus VR

Average annual bonus: $395

Average sign-on bonus: $6,926

Average annual base salary: $119,000

Amazon

Average annual bonus: $24,732

Average sign-on bonus: $41,340

Average annual base salary: $118,000

Square

Average annual bonus: $988

Average sign-on bonus: $17,996

Average annual base salary: $134,000

Uber

Average annual bonus: $31,633

Average sign-on bonus: $1,807

Average annual base salary: $117,000

Pinterest 

Average annual bonus: $4,374

Average sign-on bonus: $33,376

Average annual base salary: $151,000

Tesla

Average annual bonus: $4,779

Average sign-on bonus: $19,447

Average annual base salary: $105,000

UnitedHealth Group

Average annual bonus: $7,280

Average sign-on bonus: $118

Average annual base salary: $87,000

Snap Inc.

Average annual bonus: $10,588

Average sign-on bonus: $23,705

Average annual base salary: $127,000

Hewlett Packard Enterprise Co.

Average annual bonus: $10,756

Average sign-on bonus: $8,265

Average annual base salary: $131,000

CSRA

Average annual bonus: $13,732

Average sign-on bonus: $1,186

Average annual base salary: $100,000

credit: Facebook

Capital One

Average annual bonus: $15,114

Average sign-on bonus: $8,568

Average annual base salary: $107,000

Fitbit

Average annual bonus: $18,069

Average sign-on bonus: $25,459

Average annual base salary: $128,000

Pandora

Average annual bonus: $22,316

Average sign-on bonus: $18,886

Average annual base salary: $109,000

Microsoft 

Average annual bonus: $23,224

Average sign-on bonus: $20,191

Average annual base salary: $179,000

Airbnb

Average annual bonus: $23,250

Average sign-on bonus: $23,250

Average annual base salary: $124,000

Arista Networks

Average annual bonus: $27,497

Average sign-on bonus: $18,652

Average annual base salary: $151,000

credit: Facebook

Linkedin

Average annual bonus: $32,216

Average sign-on bonus: $25,418

Average annual base salary: $149,000

Dropbox

Average annual bonus: $32,707

Average sign-on bonus: $32,833

Average annual base salary: $144,000

VMware

Average annual bonus: $33,145

Average sign-on bonus: $18,851

Average annual base salary: $147,000

Salesforce

Average annual bonus: $39,959

Average sign-on bonus: $28,314

Average annual base salary: $142,000

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One of the sources said the recent trades were at a record-high of $4,200, valuing the firm at $19 billion or more. That compares to around $16 billion earlier this autumn.

Spotify is aiming to file its intention to float with U.S. regulators toward the end of this year, sources said.

Also supporting perceptions of Spotify's increasing value, Tencent's <0700.HK> purchase of new Spotify shares implies a valuation of $5,000 per share, one of the sources said.

Spotify and the music arm of China's Tencent Holdings Ltd said last week they would buy minority stakes in each other, but gave no financial details.

Spotify did not immediately respond to inquiries about valuation and listing.

The private market for shares prior to a public listing allows employees and founders of private companies such as Spotify to cash in on some of their paper wealth, while letting other investors get a head start on the listing.

Spotify's valuation when it lists - expected to be within 90 days after filing - is forecast to be a few billion dollars higher than current trades as illiquidity risk tends to depress the value ahead of listing, the sources said.

While several big tech firms have struggled to enter China, Spotify has with the Tencent deal secured an exposure to the growing Chinese music streaming market.

Spotify is the biggest global music streaming company and counts tech giants Apple <AAPL.O> and Amazon <AMZN.O> as its main rivals.

The timing for its filing with the U.S. Securities and Exchange Commission in December is roughly in line with what has been previously suggested by sources.

Spotify aims to pursuing a so-called direct listing on the New York Stock Exchange, allowing existing investors to sell shares without raising money from new ones, sources have previously told Reuters. The move is also aimed at saving hundreds of millions of dollars in underwriting fees from investment banks.

(Reporting by Olof Swahnberg and Helena Soderpalm, additional reporting by Dasha Afanasieva, editing by Niklas Pollard and Jane Merriman)

 

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