WMG And Sony Combine To Sell Off More Than $1 Billion In Spotify Stake


Sell Off

WARNER MUSIC GROUP pocketed $400 million YESTERDAY (5/7), when it sold 75% of its stake in SPOTIFY. The move was unveiled on WMG’s financial call by CEO STEVE COOPER.

It wasn’t the only big SPOTIFY sell-off however, as a SONY MUSIC regulatory filing made public news that the company has sold about half of its stake for $750 million.

“We were the first major music company to announce that we would share proceeds with our artists from the sale of equity in digital services — in this case, SPOTIFY,” COOPER said. “Just so there won’t be any misinterpretation about the rationale for our decision to sell, let me be clear: We’re a music company, and not, by our nature, long-term holders of publicly traded equity. This sale has nothing to do with our view of SPOTIFY’s future.”

The major labels bought large stakes in SPOTIFY as part of rights negotiations years ago. There was no indication that UNIVERSAL MUSIC GROUP was considering a similar move.

« back to Net News


googletag.cmd.push(function() { googletag.display(‘div-gpt-ad-1490814144737-12’); });


Comments Closed