MBW has verified that Sony / ATV, like other major publishers, does not and has never held any stock in Spotify – meaning it is not currently participating in the stock selling bonanza that is enjoyed by major record companies and Merlin.
But, we found out, the publisher headed by Marty Bandier Is owning a stake in Tencent Music Entertainment (TME), which makes things rather interesting.
TME is a music company majority owned by Chinese media and entertainment giant Tencent, valued at more than $ 500 billion.
It is home to three of the major music streaming services in China: QQ Music, Kugou, and Kuwo.
TME is said to be preparing for an IPO in the United States later this year, which would value it at $ 25 billion.
News of Sony / ATV’s minority stake in company buried in Spotify F-1 financial file published by the Swedish company in March, before its IPO.
(It took us a while to spot him. Sorry about that.)
Why does Tencent Music Entertainment shareholder information appear in a Spotify folder?
Because in December of last year, Tencent took control of a 9.1% stake in Spotify – about a quarter of which was owned directly by TME. (The level of detention may have changed since then, which is why we are writing in the past tense.)
In return, in the context of a share exchange, Spotify took control of “a non-controlling interest of approximately 9% in Tencent Music Entertainment ‘.
The document below, which reveals 25 shareholders of TME, shows that in addition to Sony / ATV Music Publishing (Hong Kong), EMI Music Publishing (EMP) also owns a stake in TME.
This is of course good news for Sony Corporation, which just shelled out $ 2.3 billion to acquire an additional 60% stake in EMP – a deal that has yet to be approved by regulators. – to increase its stake to 90%.
(Sony Corp also owns 100% of Sony / ATV, following a $ 750 million deal with Jackson Estate in 2016.)
The value of Sony / ATV’s and EMI Music Publishing’s holdings in TME is not revealed by the Spotify filing, although one source has suggested that they each represent a “shine” of the company.
Other TME shareholders listed below include EMI Group Limited, which according to documents filed by Companies House in the UK is 100% owned by Universal Music Group.
MBW understands that Sony / ATV was successful in acquiring stakes in China Music Corp (CMC), before Tencent acquired a controlling stake in the then-valued $ 2.7 billion company in 2016.
As part of this agreement, TME took control of Kuwo and KuGou.
You can see the full list of TME shareholders, as of March 2018, below.
Music trade around the world