Pandora’s greatest fears have been recognized. Spotify, the 6 year old digital music service that allows you to stream thousands of songs for $9.99 a month is planning an IPO for the fall, for what is reported to be an $8 billion value.

For ten bucks a month, Spotify allows you to create and share playlists, listen to genre and artist specific radio stations, and listen to music without wifi. In comparison to their direct competitor, Pandora, who makes about 88% of it’s revenue off of advertisements, where as Spotify generates the opposite; 85% from subscriptions and 15% from advertisements.

With a $200 million credit line from their lenders, Spotify just may blow other music streaming apps out of the digital water.

Spotify also has a $200 million credit line from Morgan Stanley, Deutsche Bank, Goldman Sachs and other lenders. One of those creditors will likely lead the company into the public realm come fall 2014 (or later, depending on the market). Spotify has sought a filings expert who can handle all of the Securities and Exchange Commission (SEC) paperwork. One banker has valued the company at $8 billion going into an IPO.

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