One would assume that companies such as WMG and Sony know a thing or two about the music business. 6 Which is very much in the business of holding long term equity stakes. It is wholly owned by the investment firm Access Industries. We fully expect Spotify to continue to play a major role in that growth.’” 5Įxcept that WMG is not a stand-alone music company. We’re hugely optimistic about the growth of subscription streaming, we know it has only just begun to fulfill its potential for global scale. ‘This sale has nothing to do with our view of Spotify’s future. “’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,’ he said. When asked for a reason for the sell-off, WMG CEO, Steve Cooper, was all standard issue Silicon Valley unicorns and rainbows. 4Īnd now, less than three months after the initial stock dump, Warner Music Group has joined Merlin in the “total divestment club.” Independent Record Label Global Digital Rights Agency sold 100% of its shares.Warner Music Group sold 75% of its shares.Within one month after Spotify’s shares first traded publically in the United States (April 3, 2018), the labels immediately started dumping their shares. On Tuesday, August 7, 2018, in an earnings call with stock analysts, Warner Music Groups revealed that it had now sold all of its holdings of stock in Spotify, realizing $504 million. Everybody knows this.Įxcept, it appears, the record companies. Streaming is the future of the music business. Guest post by Stephen Carlisle of NOVA Southeastern University
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