This week has brought some big news in the tech industry. Google tends to always find a way to make news headlines. This is no different this week. Google has been in a battle with the European Union for quite some time. This week increased the intensity of that battle. Meanwhile, investors around the world will be eager to learn about Spotify’s upcoming IPO. First up is Spotify. The company just recently filed for their initial public offering. Should investors take the bait?
Spotify Technology Inc. filed for its IPO this Wednesday. The company notified the Securities and Exchange Commission that it intended to trade under the ticker SPOT. This comes as the company reports huge losses of $1.5 billion in 2017. The company insists its shares have climbed as high as $132.50 on private markets. As of February 22, the company has a valuation of $23 billion. At this point in time, the company has roughly 71 million paying subscribers and at least 159 million monthly active users.
There are two big rivals to Spotify. They include Pandora Media and Apple. Apple manages to make profits with their hardware. Pandora has never been able to turn a profit. So, is Spotify worth the investment? As long as the consumer knows how to open exe files on Mac, they can use either platform. There is a good chance that they would choose Apple or Pandora. Spotify might look great on the outside, but it is definitely a risky investment.
Spotify Relying More And More On Google’s Cloud
It has already been pretty evident that Spotify has been relying on Google’s Cloud services ever since they were introduced on the market. However, the streaming company announced Wednesday that they are now even planning on moving over more computer and data centers to Google. Of course, Google loves this, as it will be a huge booster for their Cloud services. Since Google is constantly going head to head with Amazon Web Services, Microsoft, IBM, and Oracle, this will be a huge advantage for them.
Spotify was recently using the Amazon’s Cloud storage for their storage needs, but way back in 2016, they announced that they might be making a switch back to Google, and it looks like they are finally making that switch. All of this is really kind of ironic since Google and Amazon both directly compete against Spotify in the music streaming industry. With that being said, Spotify said that they do not believe that Google will use the GCO operation as a chance to get the competitive edge against them.
DoorDash Raises Big money
This week, it was announced that DoorDash had raised $535 million in a Series D round. The funding was led by SoftBank, which is a Japanese technology investor. DoorDash has refused to disclose its valuation. In 2016, the company had a valuation of $700 million. There is a good chance that the number is much higher now. GIC, Sequoia Capital and Wellcome Trust also invested in DoorDash. This is certainly a company that consumers and investors will want to eye an eye on.
On Thursday, the European Union took the steps to push against terrorist content on websites. Officials pressured a variety of tech companies, including Facebook, Twitter and Google to remove the illegal content that appears on their online platforms.
The EU legislation would require the tech firms to remove the illegal content within one hour after Europol or law enforcement flagged it. Removing the content could violate freedom of speech, which is a major concern for tech firms.
Terrorist content would include Islamic State propaganda videos and written content that incites hatred. Currently, some of the largest web companies are volunteering to remove the terrorist content.