Sony stands to reap almost $1 billion gain from Spotify stake1 min read . Updated: 05 Apr 2018, 12:31 PM IST
Sony will record a gain from its stake in Spotify , owner of the world's largest music streaming service
Los Angeles: Sony Corp. will record a gain of almost $1 billion from its stake in Spotify Technology SA, owner of the world’s largest music streaming service.
The sum reflects proceeds from the sale of Spotify stock Tuesday, when the streaming service went public, as well as the higher value of Sony’s remaining stake in the company following the listing, according to a regulatory filing. Sony sold 17% of its holdings.
Spotify’s market debut delivered a windfall for the music companies that acquired stakes several years ago. Sony, which operates the world’s second-largest record label and largest music publisher, owned 5.7% of the company prior to the sale, the fifth-largest stake and most of any music company.
Some artists have criticized Stockholm-based Spotify and the labels for not sharing enough of the proceeds. Tokyo-based Sony and its Orchard subsidiary have said they will.
“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. “This is consistent with our previously announced policy." Bloomberg