Shares of Spotify fell as much as 9% on the New York Stock Exchange during Day 2 of its life as a publicly held company. Late in the session, however, the stock climbed back up to close down just 3.2% for the day, to $144.22 per share.
The stock is still above the $132.50-per-share topmost end of Spotify’s private stock sales prior to the NYSE debut, meaning that its previous investors are ahead in terms of the value of their stakes. At the current price, Spotify has a market value estimated at $25.7 billion, making it more valuable than media and tech companies including CBS, Viacom, Twitter and Snap.
Spotify’s IPO was an unconventional direct listing, which eliminated Wall Street banking firms as underwriters and allowed most existing shareholders sell their stock immediately.
On Wednesday, Sony disclosed that Sony Music Entertainment sold 17.2% of its 10.16 million Spotify shares, netting it more than $260 million. That leaves Sony Music with 8.4 million shares, or 4.7% ownership of Spotify’s total ordinary shares.
It’s not known, at this point, which other shareholders sold Spotify shares or how much they unloaded.
Spotify CEO and co-founder Daniel Ek directly owned about 8.8% of the company’s outstanding shares as of March 21 — worth around $2.25 billion as of Wednesday’s closing price — and co-founder Martin Lorentzon owned 12.2% (worth $3.1 billion), according to regulatory filings.
Other Spotify shareholders include Warner Music Group and Universal Music Group (each said to own 4% of the company) and investment firms Tiger Global and TCV. Tencent, the Chinese internet giant, owns 9.1% of Spotify’s outstanding shares but has agreed to retain ownership until at least December 2020.
Spotify, the No. 1 music-streaming service worldwide, reported 157 million monthly active users as of the end of 2017; of those, 71 million were premium subscribers. The company last week said it expects revenue to grow 20%-30% in 2018, and to have between 92 million and 96 million paying subs.