Telia sold its stake in Spotify ahead of the music streaming service’s stock exchange debut, which saw its share price fall on the opening day of trading.

The operator acquired a 1.4 percent stake in June 2015 when it invested $115 million in its fellow Swedish company.

Last week, Telia said it had concluded the sale of its entire stake for $272 million, which equates to a 2.4-fold return on investment.

The operator said it had been divesting its shareholding to institutional investors “in several steps over some time”.

The two companies have a relationship dating back to 2009, when Telia began to include Spotify in its bundles.

In 2016, Telia launched a Spotify-based service called CoPlay that created playlists based on users’ listening habits.

The service was one of the apps used to launch the operator’s smart home service Telia Zone.

[Read more: Our connected home platform is no “rinky dink” project, says Telia’s Head of Innovation]

Spotify opted for a direct listing, as opposed to a tradition IPO, whereby shares could only be acquired on the first day of trading.

The stock opened at $168 per share in New York yesterday (3 April) but had fallen to $149 by the close.

Johan Dennelind, President and CEO of Telia Company, said: “We wish Spotify all the best in its next phase as a truly global listed company.

“Spotify has been a fantastic investment for Telia Company, both from a direct return and a partnership perspective.”

Read more: Sell-offs drive profits at Telia, but revenue growth remains stuck in first gear

More News

Iliad enters content game in France, finally launches Italian mobile business Iliad enters content game in France, finally launches Italian mobile business Iliad has acquired football rights in France and launched its opco in Italy as it looks to reboot after a disappointing set of financial results. More detail
Three UK appoints new CCO, CFO Three UK appoints new CCO, CFO The departure of Three UK's Chief Commercial Officer after just 18 months in the job has triggered a shake-up of the mobile operator's top team. More detail
TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk to sell enterprise customer base to Daisy as it registers full-year loss TalkTalk has agreed to sell 80,000 business customers to rival Daisy Group in a £175 million deal. More detail
A1 Telekom Austria Group rebrand reaches Bulgaria A1 Telekom Austria Group rebrand reaches Bulgaria Bulgaria is the third A1 Telekom Austria Group opco to get rebranded as the telco looks to market itself as a provider of "advanced" IT, IoT, cloud and content services. More detail
Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services puts IoT to use on saving ships’ fuel costs Orange Business Services has expanded its work with Dobroflot by developing a customised IoT solution for the Russian fishing company. More detail
    

 

European Communications is now
Mobile Europe and European Communications

  

From June 2018, European Communications magazine 
has merged with its sister title Mobile Europe, into 
Mobile Europe and European Communications.

No more new content is being published on this site - 

for the latest news and features, please go to:
www.mobileeurope.co.uk 

 

@eurocomms