Spotify Expertise S.A. (SPOT) provides an audio-streaming subscription service. The corporate monetizes its service by month-to-month charges for its premium subscription service and thru gross sales of promoting related to its free streaming service. Spotify provided companies globally in 184 international locations and territories, and had 406 million month-to-month lively customers (MAUs) and 180 million Premium Subscribers as of Dec. 31, 2021.
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Key Takwaways
- Headquartered in Sweden and legally domiciled in Luxembourg, Spotify is a international firm and is thus not required to reveal the identical data as U.S. corporations in regards to the share possession of company insiders.
- As a consequence of lack of know-how on particular person insider shareholders, the highest six shareholders we take a look at on this story are all listed as institutional buyers.
- The highest institutional shareholders of Spotify are Daniel G. Ek, Sven Hans Martin Lorentzon, Baillie Gifford & Co., Morgan Stanley (MS), Tencent Holdings Ltd. (TCEHY), and T. Rowe Worth Associates Inc.
High 6 Institutional Shareholders
Institutional buyers maintain nearly all of Spotify’s shares at about 55-57% of complete shares excellent. Every of those shareholders is taken into account an institutional investor though the primary two are names of people. The time period “institutional” doesn’t essentially discuss with a monetary establishment. It’s used on this context to designate an investor with vital holdings of a safety and who should subsequently file particular paperwork with the Securities and Change Fee (SEC).
Funding managers with not less than $100 million in belongings beneath administration (AUM) should file a 13F type every quarter. A person or group that acquires greater than 5% of an organization’s shares should file inside 10 days of the transaction a 13D type, or in sure instances the easier 13G type. Any investor submitting one in all these varieties is taken into account an institutional investor.
“Insider” refers to folks in senior administration positions and members of the board of administrators, in addition to folks or entities that personal greater than 10% of the corporate’s inventory. On this context, it has nothing to do with insider buying and selling.
Daniel G. Ek
Daniel Ek owns 32.3 million shares of Spotify, representing 16.7% of complete shares excellent, in keeping with the corporate’s annual report for the interval ending Dec. 31, 2021. Mr. Ek is the co-founder and chief govt officer (CEO) of Spotify. He based the corporate in 2006 together with his enterprise accomplice, Martin Lorentzon. Spotify has since grown into a number one music-streaming service. Mr. Ek oversaw the corporate’s preliminary public providing (IPO) in 2018. Earlier than Spotify, he based an internet advertising agency known as Advertigo, which he bought to Sweden-based Tradedoubler AB in 2006. Mr. Ek has a internet price of $2.2 billion.
Sven Hans Martin Lorentzon
Martin Lorentzon owns 21 million shares of Spotify, representing 10.9% of complete shares excellent, in keeping with the corporate’s annual report for the interval ending Dec. 31, 2021. Mr. Lorentzon is the opposite co-founder of Spotify and at present serves as the corporate’s vice chair. He’s chargeable for designing and implementing methods, budgets, and targets. From 2008 to 2016, Mr. Lorentzon served as the corporate’s chair of the board. In 1999, he based Tradedoubler, the corporate to which Mr. Ek bought Advertigo in 2006. Mr. Lorentzon additionally served on the board of administrators of Telia Firm AB, Sweden’s main telecom operator, between 2013 and 2018. He has a internet price of $2.6 billion.
Baillie Gifford & Co.
Baillie Gifford owns 22 million shares of Spotify, representing 11.5% of complete shares excellent, in keeping with Spotify’s annual report for the interval ending Dec. 31, 2021. Baillie Gifford is an funding administration agency with greater than $335.8 billion in AUM throughout a variety of asset lessons. The corporate manages a various set of mutual funds. The Baillie Gifford Worldwide Progress Fund is one in all its largest funds. Spotify is among the many fund’s prime 10 holdings, comprising about 3.52% of the fund’s complete belongings.
Morgan Stanley
Morgan Stanley owns 17.3 million shares of Spotify, representing 9% of complete shares excellent, in keeping with the Spotify’s annual report for the interval ending Dec. 31, 2021. Morgan Stanley is a multinational funding financial institution and monetary companies firm with about $1.4 trillion in AUM. The agency provides a various vary of mutual funds.
Tencent Holdings Ltd.
Tencent Holdings owns 16.6 million shares of Spotify, representing 8.7% of complete shares excellent, in keeping with Spotify’s annual report for the interval ending Dec. 31, 2021. Tencent is a China-based multinational know-how holding firm whose subsidiaries present social networking, e-commerce, cellular video games, web companies, cost techniques, leisure, and extra. The corporate additionally maintains a portfolio of fairness securities.
T. Rowe Worth Associates Inc.
T. Rowe Worth Associates owns 14.3 million shares of Spotify, representing 7.4% of complete shares excellent, in keeping with Spotify’s annual report for the interval ending Dec. 31, 2021. T. Rowe Worth Associates is a subsidiary of T. Rowe Worth Group Inc. (TROW), which is a worldwide funding administration agency with about $1.39 trillion in AUM. The agency provides each alternate traded funds (ETFs) and mutual funds. Its largest ETF, the T. Rowe Worth Blue Chip Progress ETF (TCHP), has $265.93 million in AUM. Spotify contains about 0.3% of the fund’s complete belongings.
How Does Spotify Make Cash?
Why Have Some Artists Eliminated their Content material from Spotify?
Some musicians and bands have requested Spotify to take away their content material to protest the corporate’s insurance policies, reminiscent of low artist royalty pay or the corporate’s dedication to right-wing podcasters like Joe Rogan.
Is Spotify Free?
Spotify has a free model obtainable to customers, which is supported by advert income. The upgraded premium service has a paid month-to-month subscription, the price of which varies by nation.