Affiliates of private equity firm Technology Crossover Ventures (TCV) sold nearly 300,000 shares of Spotify on Tuesday (May 6), with a combined market value of about $189.6 million.
The sales were disclosed in five separate Form 144 filings with the US Securities and Exchange Commission on Tuesday, as spotted by MBW.
TCV is an early investor in Spotify, reportedly backing the entirety of the company’s $250 million funding round in 2013. That raise valued Spotify at above $4 billion.
According to the new filings, the largest sale came from TCV XI, L.P., which sold 194,009 shares valued at $123.7 million. Three other related entities also disclosed Spotify divestments:
- TCV XI (A), L.P. sold 61,577 shares for $39.3 million
- TCV XI Member Fund, L.P. sold 13,447 shares for $8.6 million
- TCV XI (B), L.P. sold 13,725 shares for $8.8 million
- TCV XI (Lux), SCSp sold 14,565 shares for $9.3 million
All shares are classified as common stock and were sold through Morgan Stanley & Co. LLC. The filings indicate that all shares were previously acquired via open market purchases in 2022.
The sales signal a significant liquidation of Spotify holdings by TCV, a longtime investor in the streaming giant. The TCV-related entities did not report any significant sales in the last five years.
Following the 2013 Series F, TCV also reportedly took part in Spotify’s fundraising in 2015 that secured $526 million from TCV, Goldman Sachs, GSV Capital, Rinkelberg Capital, Teliasonera and more.
TCV, which invests in digital and content companies, also led a $250 million funding round for Vice Media in September 2014. The following year, TCV took part in a $60 million investment round for Believe Digital, now known as publicly listed digital music company Believe.
TCV is also part of a consortium led by Believe founder and CEO Denis Ladegaillerie which plans to acquire the remaining shares of Believe from public shareholders. As MBW previously noted, TCV currently holds 96.65% of Believe‘s share capital privately, while the sub-4% remainder of Believe’s stock is held by public shareholders on the Paris Euronext.
TCV has so far invested over $18 billion in more than 350 tech companies and backed over 150 IPOs and strategic deals.
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