New York partner Bonnie A. Barsamian was quoted in the Law360 article “Spotify Opens Door to Direct Listings Among Tech Unicorns.” The article discussed Spotify’s use of a direct listing to sell shares publicly and whether other companies might or should follow suit.
Bonnie noted that Spotify’s direct listing could attract interest among a small subset of companies – namely technology firms that don’t need cash and have an existing shareholder base – but said she doesn’t see it as the wave of the future for capital markets generally.
“It’s today’s shiny new toy,” Bonnie said. “It may or may not be the shiny new toy for a few days and it could end up being on the Island of Misfit Toys. Only time will tell.”
Read “Spotify Opens Door to Direct Listings Among Tech Unicorns.” (Subscription Required)