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INTERESTING
Daniel Ek and Martin Lorentzon Cash Out $100MM+ In Spotify Shares
Daniel Ek and Martin Lorentzon may have netted a large sum from their shares in Spotify.
Last May, Sony cashed out 50% of its Spotify shares, earning a cool $760 million. Less than a week later, Warner Music Group revealed it had dumped 75% of its shares in the streaming music service, netting $400 million. Warner later sold all of its shares in August, earning slightly over $100 million more. Finally, Merlin cashed out 100% of its shares in Spotify, pledging to pass the sale through to its members.
They’re not the only ones. According to a new report, Spotify founders Daniel Ek and Martin Lorentzon have sold significant shares in the company.
So, how much are your shares in Spotify worth?
A Securities and Exchange Commission (SEC) filing obtained by Di Digital reveals Ek and Lorentzon have sold their shares for over kr 1 billion ($110 million) each in recent months. Daniel Ek, Spotify’s CEO, received the most from the recent sales, reportedly earning kr 1.2 billion ($132 million).
For the period of July to September 2018, Ek sold 336,213 shares for kr 560 million ($61.6 million). Di Digital states he plans to sell more shares for kr 600 million ($66.1 million).
Lorentzon, meanwhile, sold 317,800 shares between July and September for kr 530 million ($58.3 million). He also stated his intention to sell more shares for kr 288 million ($31.7 million).
Speaking with the Swedish publication, Sofie Grant, a Spotify representative, confirmed the sale.
“Daniel will sell a small share of [company] shares in the next nine months as part of his long-term financial strategy. This sale of shares will constitute a minimal part of his holding in the company.”
Despite the sizable sales, Ek and Lorentzon clearly don’t want to lose control of the company.
The company reportedly had a market valuation of $31.5 billion at close on Thursday. Both still own a large percentage in Spotify.
Following the sales, Ek’s total holding in the company has dropped from 8.8% to 8.3%. Lorentzon now owns 11.8% of the company, down from 12.2%. He remains the company’s largest shareholder, followed by Tencent – which owns 10% – and Ek. Since the company’s IPO launch in April, Ek and Lorentzon’s holdings have decreased just half a percentage point.
According to Di Digital, both Ek and Lorentzon have the opportunity to extend their voting rights via special certificates. These would cover about 80% of all votes in Spotify.
https://www.digitalmusicnews.com/2018/10/05/latest-daniel-ek-martin-lorentzon-spotify-shares/