DoNews May 8th news (reporter to secret) this Monday, Warner Music Group announced that it had sold 75% of its holdings of Spotify shares, worth about $400 million. Before that, SONY, a music record company with most Spotify shares, also announced that it had sold about half of its holdings of Spotify shares, worth about $750 million.
Steve Cooper (Steve Cooper), chief executive of Warner Music Group, revealed the sale of Spotify shares in the company’s revenue phone conference, and said it had nothing to do with the future of Spotify. Warner, SONY, and universal music, the three largest record companies, have gained a lot of profits from Spotify, so their investment in Spotify has been successful.
Cooper said in a conference call: “we are a record company, not a long-term shareholder of other listed companies. The sale of this stock does not indicate that we are not optimistic about the potential of Spotify. On the contrary, we are very optimistic about subscription payment mode for streaming music services. We know that this subscription payment mode will be extended to other markets around the world, and Spotify will be the main player in the trend.
Warner Music and other record companies have said that they will share some cash from the sale of Spotify shares to musicians and writers.
Spotify went public in April. Last Wednesday, the company released its first quarterly earnings report. Perhaps due to the poor performance of the first earnings after Spotify listing, the growth of the two main business revenue of advertising and subscribers slowed down, resulting in a 8% plunge in share prices. (finish)