Spotify is one step closer towards launching its initial public offering (IPO).
The music streaming service has inked a deal with Warner Music Group, renewing its licensing deal with the company. The group’s artists include the likes of Ed Sheeran, Madonna, Coldplay, Wiz Khalifa, Jason Derulo and Metallica.
This is what Warner Music had to say via Instagram:
“Good news for music lovers: @spotify and Warner Music Group have renewed their global partnership… 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.”
The company added that even with how fast the industry is growing, there’s much potential for music subscription to reach wider audiences and territories.
“Our partnership with Warner Music Group will help grow the new music economy where millions of artists can instantly connect with fans, and millions of fans can instantly connect with artists,” Spotify responded.
More importantly, the move means that Spotify has now reached agreements with all three of the major music labels, Warner Music, Sony Music (NYSE:SNE) and Universal Music Group.
Spotify has been seeking a nontraditional IPO, meaning it would sell its shares directly to investors instead of going through Wall Street’s financial institutions. The expected IPO date is sometime in late 2017 or early 2018.