Morgan Stanley, in January of last year, suggested that Universal Music Group - music’s biggest rightsholder, and therefore Spotify’s biggest supplier - could be worth as much as $42 billion (it’s since been valued at just over $33 billion ).
While we don’t know precisely how much of Spotify these firms owned before their stock tipped the five percent scale, we do know this: Morgan Stanley purchased between 2.3 percent and 7.3 percent of Spotify in 2019, for a sum somewhere between $550 million (for 2.3 percent) and $1.75 billion (for 7.3 percent), based on a median annual Spotify market cap of $23.95 billion.
This stock sale would have banked anywhere between $1.29 billion and $1.81 billion for Tiger.Ĭoming in relatively late to the five-percent-plus Spotify stock ownership club in 2019 were Morgan Stanley and T. hedge fund manager Tiger Global - dumped 11.5 million Spotify shares in 2019, taking its stake from 6.6 percent down to just 0.1 percent. One key revelation from the filings: Tiger Global Private Investment Partners - an offshoot of U.S. Therefore, they tell us a lot about those who bought chunks of Spotify in the past calendar year, and those who cashed in their stock. The SEC docs revealing these details ( SC-13G filings ) are designed to show which parties owned more than five percent of Spotify at the end of 2019 - but they also show the holdings of those who used to own five percent. With Sony and UMG added into the mix, then, the names mentioned here comfortably own more than 70 percent of Spotify. These three investment powerhouses owned more than 25 percent of Spotify between them - a fact worth remembering next time there’s an argument about whose interests Spotify is acting in when it makes controversial moves (for example, SPOT’s ongoing legal appeal against a royalty pay rise for songwriters in the United States ).įurthermore, according to MBW estimates, which my sources suggest are still solid, two major record companies - Sony Music Entertainment and Universal Music Group - continue to jointly own between six percent and seven percent of Spotify (Sony around 2.35 percent and Universal around 3.5). (9.1 percent) and a run of three asset-management specialists: Baillie Gifford (11.8 percent), Morgan Stanley (7.3 percent), and T.Rowe Price Associates (6.2 percent).
In total, at the close of last year, SEC documents show that exactly 65 percent of Spotify was owned by just six parties: the firm’s co-founders, Daniel Ek and Martin Lorentzon (30.6 percent of ordinary shares between them) Tencent Holdings Ltd.
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