Epidemic Sound Reportedly Plots 2025 IPO As Net Sales Approach $140 Million

epidemic sound ipo
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epidemic sound ipo
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Royalty-free song library Epidemic Sound is reportedly exploring a possible IPO. Photo Credit: Harri P

Epidemic Sound is reportedly exploring the possibility of listing on the public market as early as next year.

The royalty-free song library’s potential IPO came to light in a Reuters report; Epidemic itself hadn’t commented publicly on the subject at the time of this writing. But according to the mentioned outlet, which cited anonymous sources, the Stockholm-based business intends to assemble an advisory team “in the coming months” to prepare for the stock-market debut.

Notwithstanding these imminent plans and the near-term timetable, the same anonymous sources emphasized that the “deliberations are preliminary” and not set in stone, per the text.

While we’re without additional information about Epidemic’s possible IPO at present, it’s worth noting that the business was valued at $1.4 billion in March of 2021, when it raised $450 million from BlackstoneEQT, and others.

Furthermore, Epidemic reportedly lost around $17.6 million in 2020, when it trimmed nearly one-fifth of its team and experienced a 49% revenue spike to $69.5 million. Per Reuters’ recap of the company’s 2023 financials, Epidemic last year achieved net sales of approximately $140.7 million (up 25%) at current exchange rates, with EBITDA of roughly $5.5 million.

Bearing in mind the IPO ambitions, 2023 brought the rollout of a localized Epidemic platform in Italy, Portugal, Brazil, and Mexico, on the heels of 2022 expansions into Spain, France, and Germany.

Looking ahead to other major developments on the horizon for Epidemic, which is embracing AI in an effort to optimize discovery, the platform’s copyright infringement lawsuit against Meta is now scheduled to take place next year.

We’ve covered that high-stakes courtroom confrontation, centering on the alleged infringement of a substantial number of works on Facebook and Instagram, since it was filed in the summer of 2022. The suit was for a time scheduled to head to trial in 2024.

Following a case management conference held about one week ago, though, the presiding judge adopted a new schedule with a planned trial date of October 6th, 2025.

Shifting the focus from this legal battle and back to industry (and industry-adjacent) IPOs, StubHub is reportedly looking to begin trading on the public market sooner rather than later. Also potentially on the way is an IPO or sale for Selena Gomez’s Rare Beauty cosmetics operation.

Some have attached an astonishing $2 billion valuation to the entity, which only arrived on the scene in 2020 but reportedly recorded $400 million in net sales during the 12 months ended February of 2024.