×
You will be redirected back to your article in seconds

Spotify Shares Hit by Selloff Day After IPO, but Stock Rebounds to Close Down 3.2%

Spotify investors engaged in a selloff of the music-streamer’s stock a day after the company made its public-company debut, but shares rallied late Wednesday.

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.

More Digital

  • Colin Kroll Dead Vine Obit

    HQ Trivia and Vine Co-Founder Colin Kroll Dies at 34

    Colin Kroll, co-founder of the Vine video app and the HQ Trivia game, was found dead in his Manhattan apartment early Sunday of an apparent drug overdose, Variety has confirmed. He was 34. New York Police Department officers responded at 12:18 a.m. Sunday, Dec. 16, to a call by a woman concerned about Kroll’s well-being. [...]

  • Nick Eh 30, StoneMountain64

    CAA Signs Gaming Influencers Nick Eh 30, StoneMountain64

    CAA has signed two popular live-streaming battle royale gamers — Nicholas Amyoony, better known as Nick Eh 30, and David Steinberg, aka StoneMountain64 — for representation. CAA said it will work to create opportunities for Nick Eh 30 (above left) and StoneMountain64 (above right) in all areas, including TV, motion pictures, touring, digital distribution and [...]

  • Amazon Adds NBA League Pass to

    Amazon Adds NBA League Pass Live-Streaming Games to Prime Video Channels

    Amazon is bringing pro hoops action to Prime Video Channels: The ecommerce giant now offers NBA League Pass as part of its lineup of 150-plus subscription options for Prime members in the U.S. It’s the first U.S. live-sports subscription service on Prime Video Channels. Prime members can subscribe to NBA League Pass via Prime Video [...]

  • Fifty Shades of Grey

    International Piracy Ring Stole Over 25,000 Movie and TV Digital Files, U.S. Feds Say

    A five-member international hacking crime ring stole more than 25,000 files for Hollywood movies and TV shows and illegally offered hundreds of them for sale online, according to U.S. law enforcement officials. A federal grand jury in L.A. on Wednesday (Dec. 12) indicted five men, identified as residing in the U.K., India, Dubai and Malaysia, [...]

  • Phil Schiller, Apple's senior vice president

    Apple to Update iPhones in China to Avoid Sales Ban

    Apple is pushing out a software update to iPhones in China to address a recent court order obtained by Qualcomm that banned the sale of certain iPhone models in the country. The update will allow the company to continue selling its phones in China, company representatives told Reuters Friday morning. The Fuzhou Intermediate People’s Court [...]

  • Kevin Reilly Variety Cover

    Kevin Reilly Named Content Chief for WarnerMedia Streaming Service

    Kevin Reilly — a veteran television exec who has led programming at NBC, FX, Fox, and most recently Turner Broadcasting — has been tapped to head content strategy for the still-nascent streaming service that WarnerMedia plans to launch next year. Reilly, who has led programming at Turner brands TNT and TBS since 2015, will serve [...]

More From Our Brands

Access exclusive content