Spotify's market debut is worth billions for Tencent and Sony

Spotify's arrival on Wall Street is music to the ears of some of Asia's biggest tech companies.Chinese social ...

Posted: Apr 4, 2018 11:41 AM
Updated: Apr 4, 2018 11:41 AM

Spotify's arrival on Wall Street is music to the ears of some of Asia's biggest tech companies.

Chinese social media and entertainment firm Tencent and Japanese electronics icon Sony are two of the music streaming platform's biggest backers.

Tencent holds a 7.5% stake in Spotify, according to a regulatory filing. After Spotify shares started trading Tuesday, that stake is now valued at about $2 billion.

Spotify opened at $165.90 a share on the New York Stock Exchange. The stock later fell, closing below $150 a share and giving the company a market value of nearly $30 billion.

Spotify and Tencent's music subsidiary announced a share swap in December, taking minority stakes in each other ahead of expected stock market listings this year.

Related: Spotify valued at nearly $30 billion in unusual Wall Street debut

Tencent Music dominates music streaming in China through its QQ Music, KuGou and Kuwo platforms.

It also has a stranglehold on the streaming of mainstream Western music in China through exclusive deals with Sony Music, Universal Music Group and Warner Music Group. Under the arrangement, Tencent gets to decide which songs rivals can stream.

Tencent Music is reportedly preparing for an initial public offering later this year.

Spotify owns about 9% of Tencent Music, a stake valued at -910 million ($1.1 billion), according to a regulatory filing with the US Securities and Exchange Commission. That puts Tencent Music's overall valuation at around -10.1 billion ($12.5 billion).

Related: China's big streaming shift: Paying instead of pirating

Like some other major recording labels, Sony Music owns a big chunk of Spotify. Its 5.7% stake is now worth around $1.5 billion.

The streaming music industry has given a boost to Sony's music business, whose artists include Beyonc-, DJ Khaled and Justin Timberlake.

Sony Music has reported double-digit revenue growth for the past three quarters, citing an "increase in recorded music sales due to an increase in digital streaming revenues."

Spotify's other top shareholders are co-founders Daniel Ek and Martin Lorentzon, hedge fund Tiger Global and venture capital firm TCV.

Huntsville
Clear
63° wxIcon
Hi: 81° Lo: 63°
Feels Like: 63°
Florence
Clear
65° wxIcon
Hi: 84° Lo: 64°
Feels Like: 65°
Fayetteville
Clear
64° wxIcon
Hi: 81° Lo: 61°
Feels Like: 64°
Decatur
Clear
61° wxIcon
Hi: 82° Lo: 62°
Feels Like: 61°
Scottsboro
Overcast
63° wxIcon
Hi: 80° Lo: 60°
Feels Like: 63°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 153016

Reported Deaths: 2633
CountyConfirmedDeaths
Jefferson22563372
Mobile14335314
Tuscaloosa10023133
Montgomery9759196
Madison904893
Shelby709960
Lee644966
Baldwin640569
Marshall428248
Calhoun412759
Etowah405749
Morgan396833
Houston364632
DeKalb319628
Elmore310752
St. Clair282142
Limestone270828
Walker268892
Talladega258435
Cullman227623
Lauderdale208740
Autauga201029
Jackson200915
Franklin199731
Colbert192228
Russell19053
Dallas185627
Blount184824
Chilton181731
Escambia171328
Coffee16669
Covington166029
Dale163451
Pike130512
Chambers130143
Tallapoosa128686
Clarke127117
Marion104729
Butler99840
Barbour9889
Marengo97221
Winston90413
Geneva8417
Pickens80517
Lawrence80031
Randolph79814
Bibb79114
Hale74529
Cherokee72214
Clay71912
Lowndes70127
Henry6376
Bullock63517
Monroe6319
Washington62212
Crenshaw59330
Perry5806
Wilcox55912
Conecuh55713
Fayette55312
Cleburne5287
Macon52820
Sumter46721
Lamar4565
Choctaw38712
Greene33916
Coosa1973
Out of AL00
Unassigned00

Tennessee Coronavirus Cases

Confirmed Cases: 233569

Reported Deaths: 2952
CountyConfirmedDeaths
Shelby34523553
Davidson29914326
Knox1193687
Hamilton11197103
Rutherford11090106
Williamson665649
Sumner5664107
Wilson443153
Putnam415653
Montgomery387251
Out of TN377535
Unassigned37264
Madison363079
Bradley343421
Sullivan324845
Sevier317321
Blount313932
Washington313244
Maury308135
Robertson249839
Hamblen233843
Tipton220622
Gibson205938
Dyer203726
Hardeman179532
Coffee177420
Trousdale17437
Obion164918
Bedford159620
Dickson157318
Fayette157022
Anderson156713
Greene156551
Wayne15657
Loudon155010
McMinn152232
Cumberland150124
Lawrence147918
Jefferson146619
Weakley144425
Carter142832
Monroe137027
Henderson136125
Warren135110
Hardin132219
Lauderdale131918
Macon126324
Franklin122816
Roane12017
Haywood119526
Overton113311
Johnson11067
Hawkins110524
White110214
Carroll109424
McNairy109126
Marshall10568
Rhea104916
Cheatham97311
Lake9703
Smith94713
Cocke92612
Bledsoe9244
Giles90134
Campbell8857
Fentress8618
Lincoln8142
Crockett78321
Henry74610
Hickman74413
Chester71314
Marion7089
DeKalb67716
Decatur62811
Grainger5394
Grundy5248
Claiborne5046
Union4992
Polk47413
Jackson4225
Humphreys4154
Morgan4116
Houston39215
Benton3919
Cannon3872
Clay37112
Unicoi3672
Lewis3522
Scott3324
Sequatchie3294
Stewart3117
Meigs2965
Pickett2495
Moore2452
Perry2081
Van Buren1911
Hancock1123

Community Events