Buzz It Up News

Sony Sells 17.2% Of Its Spotify Shares, Netting $260.5 Million


That means that Sony expects to record a gain of $97.30 a share in its next earnings report for all of the shares it held before trading began on the Spotify stock yesterday. Sony Music provides its artists' music to the Swedish company.

Spotify went public with a large base of paid subscribers. A list of other formidable competitors that includes Google and Amazon also offer similar music streaming services, raising the specter of Spotify being wiped out by far richer rivals.

Analysts' advice, however, is that companies are not to be misled by Spotify's first day on the market. Almost 91 per cent of Spotify's 178 million shares were tradable, a much higher percentage than typical in a traditional IPO. And among the streaming households, nearly half subscribe to a music service, a high figure also internationally.

Trading as SPOT, Spotify took the unorthodox step of listing existing shares directly on the bourse rather than issuing new stock, allowing its founders and early investors to maintain control.

Spotify, like fellow tech firms such as Tesla and Uber, has never turned a profit.

It's not the first time fraudsters have targeted Spotify-an MBW investigation in February revealed how a Bulgarian playlist-maker scammed the Spotify payout system for months a year ago.




Spotify's IPO made for an exciting day on Wall Street.

Spotify and Tencent's music subsidiary announced a share swap in December, taking minority stakes in each other ahead of expected stock market listings this year.

In contrast to last year's debut of social media group Snap, Spotify's top executives were not present at the NYSE to see their company go public for the first time. It's not really been a good time for technology stocks, but on the day of Spotify's debut the Nasdaq closed up 1.06%.

Normally, companies ring bells.

CEO Daniel Ek, who owns just over 9 percent of the music streaming company, is now sitting on about $2.3 billion of Spotify stock at its current price.

Spotify has 71 million so-called premium subscribers, including users who have given the company a credit card number for a free trial.

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