(Bloomberg) -- Sony Corp. will record a gain of almost $1 billion from its stake in Spotify Technology SA, owner of the world's largest music streaming service.
The sum reflects proceeds from the sale of Spotify stock Tuesday, when the streaming service went public, as well as the higher value of Sony's remaining stake in the company following the listing, according to a regulatory filing. Sony sold 17 percent of its holdings.
Spotify's market debut delivered a windfall for the music companies that acquired stakes several years ago. Sony, which operates the world's second-largest record label and largest music publisher, owned 5.7 percent of the company prior to the sale, the fifth-largest stake and most of any music company.
Some artists have criticized Stockholm-based Spotify and the labels for not sharing enough of the proceeds. Tokyo-based Sony and its Orchard subsidiary have said they will.
“Sony Music and the Orchard are committed to sharing with their artists and distributed labels any net gain they may realize from a sale of Sony Music's equity stake in Spotify,” the company said. “This is consistent with our previously announced policy.”
To contact the reporter on this story: Lucas Shaw in Los Angeles at lshaw31@bloomberg.net.
To contact the editors responsible for this story: Crayton Harrison at tharrison5@bloomberg.net, Rob Golum
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