Sony has sold approximately 50% of its shares in Spotify during the Swedish streaming company’s first month on the New York Stock Exchange, generating around US$750 million in the process. Ahead of the IPO (or public offering to be exact), Sony Music carried a healthy 5.7% share in Spotify. That stake is now less than 3%.
Sony had apparently sold 17.2% of its shares since the company went public, and now the company has further cashed in a much larger portion of its stock.
The filing reads, “Sony owned 5.707% of Spotify’s shares (5.082% on a fully diluted basis) at the time of the public listing, approximately half of which have been sold to date. Due to the public listing and the subsequent sale of a portion of such shares owned by Sony, Sony expects to record an unrealized valuation gain for the shares Sony continues to hold after the listing and a realized gain for the shares sold, net of the estimated amount to be shared with its artists and distributed labels. The sum of the unrealized valuation gain (net) and the gain on the sale of shares (net) to be recorded for the fiscal year ending March 31, 2019 is expected to be approximately 100 billion yen in total,” or around $910 million.
(Screenshot is a part of Sony Corp’s report)
The filing repeats Sony’s commitment to sharing the proceeds from these sales with its artists and its distributed labels.
“Sony Music and The Orchard are committed to sharing with their artists and distributed labels any net gain they may realize from a sale of Sony Music’s equity stake in Spotify,” the company said in a statement in March. “This is consistent with our previously announced policy of sharing breakage and equity proceeds from digital catalog licenses with our artists and distributed labels.”