Spotify's music service seeks to drum up $1 billion in IPO

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shows music streaming apps clockwise from top left, Apple, Spotify, Amazon, Pandora and Google on an iPhone in New York. Music-streaming pioneer Spotify will expand its financial arsenal with an initial public offering of stock. The first steps toward IPO

shows music streaming apps clockwise from top left, Apple, Spotify, Amazon, Pandora and Google on an iPhone in New York. Music-streaming pioneer Spotify will expand its financial arsenal with an initial public offering of stock. The first steps toward IPO

SAN FRANCISCO (AP) — Music-streaming pioneer Spotify is hoping to attract a new crowd of fans on Wall Street to help fend off a growing competitive threat posed by Apple.

Spotify will expand its financial arsenal with an initial public offering of stock aiming to raise $1 billion.

That figure could change as Spotify's bankers assess investor demand for Spotify shares ahead of the IPO, a process likely to be completed early in the spring.

The company's first steps toward its offering came in a confidential filing a few weeks ago, but the documents weren't released until Wednesday.

The numbers revealed Spotify's music-streaming service boasts 71 million subscribers, nearly twice as many as Apple's rival service.

But Spotify still isn't profitable. The Luxembourg-based company lost 1.2 billion euros ($1.5 billion) last year.

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