03 April 2018
| Alan Burkitt-Gray
Telia has sold all its shares in Spotify for a healthy profit just days ahead of the music streaming service listing its shares on the New York Stock Exchange.
Stockholm-based Telia was the first carrier to partner with
Spotify, also a Swedish company, and in 2015 it took a 1.4% stake for $115
million, a decision that then valued Spotify at $8.2
Telia has sold that stake in several tranches, worth a total of
$272 million, a price that is exactly in line with the expected
valuation of Spotify’s shares once they are
available to the public.
"Spotify has been a fantastic investment for Telia Company,
both from a direct return and a partnership perspective," said
CEO Johan Dennelind.
Spotify’s shares are due to be listed today,
though it is not offering new shares – so the process
is unusual in that there is not an initial public offering
(IPO) of new shares. However the listing will allow investors
to put a public value on their holdings.
According to a number of reports, Spotify’s
founders were told in February that the company was worth
around $20 billion – 2.4 times the value implied by
Telia’s investment in the company 2015. Telia also
said, when announcing the sale of the last of its Spotify
shares, that the sale price was 2.4 times the acquisition price
However investors are expecting some volatility in the Spotify
share price in the coming months.