Sony Corp. to Post $986 Million Windfall After Spotify Stock Market Debut
The Sony Music Entertainment subsidiary sold a minority stake in the music streaming giant.
Sony Corp. is to record a gain of 105 billion yen (US $986 million) after Spotify's stock market debut on the New York Stock Exchange.
The Japanese media giant on Tuesday said its Sony Music Entertainment subsidiary sold 17.2 percent of its 5.71 percent take in Spotify, and will record the windfall from an "unrealized valuation gain" in its upcoming first-quarter results.
Spotify Technology shares on Tuesday debuted on the New York Stock Exchange, opening at $165.90 per share, and putting the value of the company at around $30 billion. Instead of raising money like most companies do during their initial public offering, Spotify allowed existing shareholders to begin selling their stock to public investors.
"Because the market value of Spotify's stock following the public listing may be volatile, Sony expects such unrealized valuation gain (net) could fluctuate during the period that SME continues to hold the shares," including during the first quarter of fiscal 2019.
Shares in Spotify were trading Wednesday afternoon down $9.01, or 6 percent, at $140.04.