Days after former Spotify CFO Barry McCarthy cashed out $10 million in Spotify stock, the company’s co-founder and former chairman sold $81.5 million worth of Spotify stock.
According to a filing with the U.S. Securities and Exchange Commission on June 7, Martin Lorenson Planning to sell 255,000 Common Spotify stock.
Sales are through roscello gmbha holding company registered in Cyprus, owner Almatyis a Luxembourg-based company whose sole shareholder is Lorentzon. The vast majority of Lorentzon’s shares in Spotify are held through Rosello.
The sale represents only a small portion – approx. 1.2% – Lorentzon’s Spotify stock ownership. According to the company’s latest annual report, Lorentzon has 21,476,145 The value of Spotify stock at the end of 2023, as of Friday’s (June 7) close, was worth approximately $6.62 billion.
and 10.9% Lorentzon is Spotify’s third-largest shareholder in terms of shares outstanding, behind co-founder and CEO Daniel Ek (15.6%) and Edinburgh Investment Company Bailey Gifford (12.0%).
However, Lorentzon holds the most voting power among Spotify shareholders. Thanks to his control 61% Corporate Beneficiary Certificate (Grants voting rights, but not financial interests) Lorentzon has 42.7% Even more voting rights for Spotify than Ek 30.5%.
in April, Daniel Ek Sell 400000 Spotify shares have a total market capitalization of $118.8 million.
Lorenzo resigned from Spotify’s board of directors in 2016 after eight years as chairman. He continues to have a seat on the board and will be paid in 2023 $446,964 According to the annual report, this role is fulfilled entirely through stock options.
Lorenzo almost occupied 72,000 Spotify stock options through the end of 2023 are scheduled to be exercised between 2024 and 2028.
Lorentzon’s stock sale follows a long period of sustained growth for Spotify stock, which bottomed in late 2022 at around $75 per share and has since climbed to more than $308 increase per share 310% More than 18 months.
The company’s shares are near all-time highs set in late 2020 and early 2021 as shares of companies seen benefiting from consumers staying home during the Covid-19 pandemic.
During that time, Spotify’s stock price peaked at around $1 billion $310 But like many other darlings of that era, the company’s stock price fell sharply as the pandemic receded. However, few companies have managed to recoup nearly all of their losses like Spotify.
The Sweden-based streaming service posted its largest-ever quarterly profit in the first quarter of 2024, with operating income of 168 million euros ($182.41 million), amid hopes the company could finally start posting annual profits after years of losses.
The positive profit figure was driven by double-digit growth in subscriber and ad-supported revenue, as well as 9% Operating expenses are reduced. Some of that comes from successive rounds of layoffs, including 17% The layoffs were announced in December last year.
Spotify’s Ek said on a recent earnings call that the company is increasingly focused on profitability, having previously focused on user growth.
However, some of the company’s moves to boost profits have proven controversial, particularly its decision this spring to classify its premium subscription plans in the U.S. as “bundles,” since they now include 15 hours of audiobook time per month.
In accordance with the provisions of the Copyright Royalty Board Disc IV Under the rules, digital service providers can pay publishers and songwriters lower mechanical royalty rates through bundled services than standalone music subscriptions.
This is frustrating for American music publishers. this national music publishers association (State Drug Administration) accused Spotify of “attacking songwriters” with the move, while Machinery Licensing Collective (MLC), the company responsible for collecting mechanical royalties in the United States, has taken Spotify to court to demand new, lower fees.
The company may also face legal action from the State Food and Drug Administration, which accuses the streaming service of failing to obtain permission to provide lyrics to listeners on its platform, among other things.
Spotify called the accusations “false and misleading.”global music business
