Spotify CEO and co-founder Daniel Ek has launched into 2025 with one other important monetary transfer.
Ek bought an additional USD $27.8 million value of firm shares on Wednesday (January 8), persevering with a sample of considerable inventory transactions.
Since Ek cashed out a tranche of Spotify shares for the primary time in July 2023, he has banked round USD $568 million from SPOT inventory gross sales in whole (together with the most recent transaction), in accordance with MBW calculations.
This week’s cash-out comes as Ek continues to capitalize on Spotify’s surging inventory worth, which peaked to an all-time excessive on December 4, 2024, when it surpassed $500.
When Spotify floated on the New York Inventory Change in April 2018, the opening worth of it shares was $165.90.
In accordance with a brand new SEC submitting noticed by MBW, Ek’s newest transaction concerned the sale of 60,000 shares on the market worth of $463.93.
The most recent transaction arrives simply two weeks after Ek cashed out $27.72 million in shares shortly earlier than the vacation season, on December 23.
These latest transactions capped off a robust 12 months of share gross sales for the Spotify CEO, together with his calendar 2024 transactions totaling $376 million, in accordance with MBW’s calculations.
Ek’s newest share sale marks the eleventh time since July 2023 that he has cashed out a few of his Spotify inventory:
- In July 2023, Ek bought 675,000 shares for USD $100 million in proceeds;
- In October 2023, he bought 400,000 shares for $64.2 million in proceeds;
- In February 2024, Ek bought 250,000 shares for $57.5 million in proceeds;
- In April 2024, Ek bought 400,000 shares for $118.8 million in proceeds;
- In November 2024, Ek bought 75,000 shares for $35.8 million in proceeds;
- In November 2024, Ek bought one other 75,000 shares for $34.8 million in proceeds;
- In November 2024, Ek bought 75,000 shares once more, this time for $36.1 million in proceeds;
- In December 2024, Ek bought one other 75,000 shares $37 million in proceeds;
- Additionally in December 2024, Ek bought 60,000 shares for $28.3 million in proceeds;
- And once more in December, Ek bought 60,000 shares for $27.7 million in proceeds.
Mixed with this week’s $27.8 million cash-out, that every one involves $568 million.
Nevertheless, Ek has opted to forgo a standard wage since July 2017, as a substitute aligning his monetary pursuits instantly with the corporate’s market efficiency.
MBW famous in 2018 that Ek eschewed a standard wage in favor of a performance-based bonus scheme tied to particular progress metrics.
MBW has additionally been monitoring share gross sales from Spotify co-founder, Martin Lorentzon. Lorentzon’s SPOT share gross sales, typically carried out by way of his Rosello firm, amounted to $556.8 million throughout 2024.
Lorentzon, nevertheless, didn’t divest any shares in December.
As of December 31, 2023, Ek and Lorentzon held a 15.6% and 10.9% stake within the firm, respectively, with voting powers of 30.5% and 42.7%, respectively, in accordance with Spotify’s 2023 annual report. Lorentzon additionally serves on Spotify’s board as a director.
The transactions point out the executives’ confidence in Spotify’s future and amid broader trade optimism about streaming providers’ potential for sustainable profitability, with Spotify main market share in most areas globally. The corporate continues to develop its choices past music, investing closely in podcasts, audiobooks and even movies, whereas exploring new income streams.
Wanting forward, Spotify is scheduled to announce its This autumn 2024 monetary outcomes on February 4. The corporate’s Q3 steerage projected quarterly revenues of EUR €4.1 billion (USD $4.2 billion) and an working revenue of €481 million for This autumn. If these targets are met, Spotify could have achieved annual revenues of roughly €15.5 billion and an working revenue of €1.37 billion for 2024.
As of Wednesday (January 8), Spotify’s share worth stands at $479.73, sustaining a sturdy market capitalization of $96.33 billion.
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