Spotify IPO Is a Dog and Pony Show

NEW YORK (TheStreet) -- In December, prior to "official" knowledge that Spotify would go public (as if what we have now is "official" and as if we needed confirmation of the obvious), I published Spotify Is Overvalued, But That Really Doesn't Matter.

In that article I stated:

Technology Crossover Ventures (TCV) bankrolled Spotify's recent round of funding, taking it to a multi-billion dollar valuation. TCV has also been a big Netflix (NFLX) investor. The firm remains a major investor. And TCV is damn good at what it does. Damn good.
(Disclosure: TCV also has an equity stake in TheStreet (TST).
TCV is savvy. They have won big with Netflix. They will win big with Spotify. They wouldn't have it any other way.
Spotify can send its Chief Revenue Officer around the country all it wants. It can make mobile listening free in an effort to generate the scale necessary to sell meaningful amounts of advertising and compete with Pandora (P). It can put its very likable and competent CEO Daniel Ek in front of the media to make Spotify's optimistic bull case.
It can do all of these things. And, while I'm not here to say the people on the ground, doing the work at Spotify don't believe in their mission, I am saying that, for better or worse, it amounts to noise between massive financial transactions.
The end game for Spotify is, ultimately, getting acquired.
It will either happen before an IPO or after an IPO, but, either way, sooner or later, it will happen. It has to happen because Spotify has about zero chance of achieving the health and stability Pandora's business currently enjoys. And Pandora still has a ways to go. TCV knows this. It has to.
When the next financial transaction occurs, TCV makes out nicely.

And the situation remains the same today as I described it in December.

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