Sony sells part of stake in Spotify

Spotify — Tomorrow

This ensures that there is stability in the market when the shares begin trading.

And Spotify is taking things one step further with a very unorthodox approach to floating on the stock market.

Chase Coleman's Tiger Global Management owns almost $2 billion of Spotify Technology SA, making it one of the biggest shareholders of the music-streaming company that started trading Tuesday.

Spotify can also point to some of the more volatile stock market debuts endured by other tech companies. The shares closed at the end of the day at $149 a share, which valued the company at $26.5bn.

Spotify's founder and CEO, Daniel Ek, said in a blog post Monday that the listing wasn't supposed to be the most important day for the company. His 27 percent stake in the Swedish company is now worth $7.4 billion.

Around 30 million shares in the world's largest music streaming service, which has more than 140m active users, were traded on opening day. To date, the platform has 71 million premium subscribers.

Sony Music Entertainment sold a chunk of its shareholding in Spotify yesterday, taking home over $250m for its trouble.


Citing people familiar with Spotify's plans, Recode reports that the idea isn't to cut out massive labels or compete with them by handing out recording deals to musical acts.

Spotify went public on Tuesday - a decade after the service launched - with a debut that gave the company a $29.5 billion valuation.

He expected more companies to follow Spotify's strategy in the future, taking their time to list on the market.

It's especially hard to tell, though, how much money some investors made as Spotify rose, because Spotify has had such an extensive history of private stock sales between shareholders.

Netflix has also set itself apart from its rivals in video streaming by spending billions on original programming such as "Stranger Things", and "The Crown".

Some experts warned ahead of Spotify's debut that a direct listing opened the streaming giant up to early volatility, without underwriters or early major investors. Spotify went public with a so-called direct listing on Tuesday, cutting out Wall Street and its high fees, but missing some of that support system, as well.

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