Friday, August 18, 2017

Goldman Sachs fund sells $75m Spotify shares ahead of direct listing | Music Business Worldwide

Multi-billion dollar hedge fund Goldman Sachs Investment Partners (GSIP) has sold over $75m-worth of shares in Spotify in the past few weeks.

That represents less than half of GSIP’s total shareholding in the streaming platform, according to a report from Sky News – and has been triggered by demand from other shareholders.

Three GSIP-affiliated investors – Global Private Opportunity Partners II LP, Global Private Opportunity Partners II Offshore Holdings LP and ODM Investors LP – have collectively offloaded more than 24,000 Spotify shares at a price of $3,100 each.

Spotify stock is currently bought and sold on a private market.

Any notable switches on that private market are gaining in significance as Spotify moves towards an anticipated – and unusual – ‘direct listing’ route to floating on the New York Stock Exchange.

A direct listing would mean Spotify would avoid large underwriting fees from banks – and might also mean that it reduces harsh interest rates agreed as part of a $1bn convertible debt package it took on last year.

One of the investors in that $1bn deal, TPG, is – according to Sky – holding formal talks with Spotify regarding the ultimate upside should Daniel Ek’s company take the direct listing route to floatation.

Spotify is currently believed to be valued in the region of $13bn.Music Business Worldwide


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