Spotify signs Warner Music deal as music app looks to go public

Music streaming service Spotify is said to be considering a flotation on the New York Stock Exchange after it signed a licensing deal with Warner Music Group.

Warner was the last of the three big music labels to reach a deal with Spotify, with the Swedish company having already signed agreements with Sony and Universal.

Spotify has had to agree to putting in place certain limitations to it can get the labels on its side, making their catalogues available to the app’s 140m users.

Paid subscriber levels reached 60m last month as the company outperforms rivals such as Apple Music and Amazon.

“It’s taken us a while to get here, but it’s been worth it, as we’ve arrived at a balanced set of future-focused deal terms,” said Warner Music Group chief digital officer Ole Obermann in an Instagram post.

"Together with Spotify, we've found inventive ways to reinforce the value of music, create additional benefits for artists, and excite their fans all over the world.”

Some reports have suggested that Spotify is aiming to go public without an Initial Public Offering (IPO), opting instead to offer its existing investors increased share value.