Following is the unofficial transcript of breaking news from CNBC's David Faber. Following is a link to a story on CNBC.com: http://www.cnbc.com/2017/05/12/spotify-direct-listing-on-nyse-in-2017-or-early-2018-sources.html.
All references must be sourced to CNBC.
DAVID FABER: WE HAVE A CROWD HERE FOR THE IPO OF GARDNER DENVER. BY THE END OF THIS YEAR, WE COULD SEE A SIMILAR CROWD FOR SPOTIFY. BUT NOT BECAUSE IT'S GOING TO GO PUBLIC IN THE TRADITIONAL WAY THROUGH AN IPO. BUT BECAUSE IT IS GOING TO LIST DIRECTLY HERE AT THE NEW YORK STOCK EXCHANGE. THAT AT LEAST ACCORDING TO THE PEOPLE WHO ARE FAMILIAR WITH THE SITUATION. AS HAS BEEN REPORTED PREVIOUSLY, SPOTIFY IS CONSIDERING AND IS STILL CURRENTLY FOCUSED ON A DIRECT LISTING. IF THAT LISTING TAKES PLACE WHICH DOES APPEAR LIKELY MOST LIKELY BY THE FIRST QUARTER OR LIKELY BY NEXT YEAR, IT WILL TAKE PLACE HERE AT THE NYSE. SHOULD BE AN INTERESTING MORNING FOR WHAT IS OF COURSE BY FAR THE LEADER FAR AND AWAY IN THE STREAMING OF MUSIC SERVICES AROUND THE GLOBE. STOCKHOLM BASED COMPANY WITH A VERY SIGNIFICANT PRESENCE RIGHT HERE IN NEW YORK CITY. CURRENTLY VALUED AT LEAST ACCORDING TO THE LAST TRADE THAT TOOK PLACE IN THE SECONDARY MARKET AT $13 BILLION. THEY'RE NOT LOOKING TO RAISE CAPITAL. IN FACT, THEY'RE FREE CASH FLOW POSITIVE. THEY'RE LOOKING TO CREATE LIQUIDITY FOR THE EMPLOYEES AND MORE IMPORTANTLY FOR THE EARLY INVESTORS WHO WANT TO SELL. AND THEYN'RE CONSIDERING DOING THAT STRONGLY CONSIDERING IT IN FACT THEY'RE EXPECTING TO DO IT THROUGH THE DIRECT LISTING THAT WILL LIST RIGHT HERE AT THE NYSE. PERHAPS BEFORE THE END OF THE YEAR. IT'S GOING TO BE AN INTERESTING PROCESS. – VERY SIMILAR TO AN INITIAL PUBLIC OFFERINGS. IN THIS CASE YOU DON'T HAVE UNDERWRITERS THEY DO HAVE ADVISERS MORGAN STANLEY, GOLDMAN SACHS, ALLEN & COMPANY ARE ADVISING THE COMPANY. THEY'LL HAVE AN EDUCATION PROCESS FOR THE POTENTIAL BUYERS OF THOSE LISTED SHARES SO ESSENTIALLY YOU'LL HAVE ACCESS TO ALL OF THE SAME INFORMATION YOU WOULD. THOUGH WON'T NECESSARILY BE IN THE S-1 FILING. IT WILL STILL BE AVAILABLE TO YOU IN VERY SIGNIFICANT WAYS. I SUPPOSE THEY'LL STILL RING A BELL WHEN THAT ACTUALLY STARTS TRADING ON THAT MORNING. BUT IT IS INTERESTING TO NOTE. AND A FASCINATING BUSINESS, GUYS, SPOTIFY, 50 MILLION SUBSCRIBERS. 43% TOP LINE GROWTH OVER 3,000 EMPLOYEES. AND WHEN YOU LOOK AT THAT VALUE VERSUS PANDORA WHICH WE SPENT A LOT OF TIME TALKING ABOUT IT'S ABOUT SEVEN TIMES AS BIG.
JIM CRAMER: WOW. MONEY COULD HELP PANDORA EXPAND, BUT SPOTIFY IS WAY AHEAD.
FABER: SPOTIFY IS SO FAR AHEAD, SO DOMINANT EVEN VERSUS APPLE. OR AMAZON. OR ANY OF THEM AT THIS POINT. REALLY INTERESTING. AND WILL BE AN INTERESTING COMPANY. THEY WOULD HOPE I WOULD EXPECT IT WOULD TRADE ON THE PEER MULTIPLE TO THE LIKES OF A NETFLIX AS OPPOSED TO ANYTHING LIKE A PANDORA.
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