Tencent’s stake in Spotify is now valued at $2.4 billion. Spotify and Tencent Music Entertainment, which is the music subsidiary of Chinese conglomerate Tencent Holdings Ltd., made investments in one another at the end of last year. He currently serves as Spotify’s vice chairman and has a 12.2% stake in the company, which is now worth about $3.2 billion. Martin Lorentzon helped found Spotify more than a decade ago in Stockholm in 2006. Spotify Co-founder Martin Lorentzon (12.2%) Here’s how Spotify’s five biggest pre-existing investors did during the company’s first day as a publicly traded firm, based on their holdings before the day began. But the allure of raising money through a standard IPO will likely prove a powerful draw. Given the relative success of Spotify’s first day on the public markets, there’s a chance more private companies could follow the company’s lead and choose to go with a direct listing instead of a traditional IPO. But it also exposes firms to potential volatility, as underwriters can help stabilize a stock’s day-one performance. That can help a company save in underwriting fees and make the process more accessible to the public. Instead of a typical IPO, which gives companies a chance to raise money, Spotify opted for a direct listing, which simply offers existing stockholders the chance to cash out on their investment.įurthermore, Spotify did not work with an underwriter on the listing. Spotify’s stock was closely watched throughout the day because of the unusual process behind the company’s listing.
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