With Spotify going public in April, it has opened up the company financials and allowed longtime investors to sell some of their shares. The three major labels, Sony, Warner and Universal have been longtime investors in Spotify. In the past week, Sony and Warner have sold off over $1 billion in combined stock from their large investments in the service.
Last week, Sony sold about half of its shares, netting $750 million. Today, Warner Music Group sold off 75% of its shares, netting them around $400 million.
Selling off all of these stocks does not make it seem like they are all that optimistic about Spotify. Maybe they believe the company has peaked in value, but Warner CEO Steve Cooper says they are still optimistic about Spotify’s future.
“We’re hugely optimistic about the growth of subscription streaming. We know it has only just begun to fulfill its potential for global scale,” said Cooper in prepared remarks on earnings call via recode. “We fully expect Spotify to continue to play a major role in that growth.”
The labels have said they would distribute that money to their artists, but they never fully revealed the exact percentages like a lot of other label deals which are byzantine and purposefully vague.