Final week, MBW reported that key Spotify executives have bought some $1.16 billion in firm inventory to this point this 12 months amid a share worth rally that has seen the streaming service eclipse the worth of the world’s largest music firm, Common Music Group, by greater than two to at least one.
Since then, Co-founder and CEO Daniel Ek has bought one other tranche of shares, this time for simply in need of $37 million, in accordance to a submitting with the Securities and Alternate Fee (SEC).
Ek has been promoting shares in batches of 75,000, and the worth he’s obtained for them speaks volumes in regards to the speedy run-up in Spotify’s market worth.
A sale of 75,000 shares, registered on November 20, netted Ek $34.8 million. Six days later, he bought the identical quantity once more, this time for $36.1 million. His newest sale of 75,000 shares got here to $36.999 million.
To this point this 12 months, Ek has bought 950,000 shares of Spotify, for a complete of just below $320 million.
It’s been fairly a journey for Spotify traders over the previous few years. After hitting a rock-bottom stage in November 2022, under $77 per share – an all-time low for the reason that firm’s IPO in 2018 – the inventory has been rebounding steadily ever since.
That rebound turned parabolic this 12 months amid strong earnings stories and expectations that 2024 would be the streaming service’s first full 12 months of profitability.
On Wednesday (December 4), Spotify closed above $500 per share for the primary time – $502.38, to be exact, up some 550% in two years. It gave a few of that achieve again on Thursday (December 5), buying and selling at round $490 at mid-day.
That provides Spotify a market cap of round $98 billion, greater than double the $45.2 billion market cap of Common Music Group.
Ek isn’t the one one promoting giant quantities of Spotify inventory amid the rally. In truth, co-founder and board member Martin Lorentzon takes first place on this race, having bought some 1.49 million shares for a whopping $556.77 million for the reason that begin of the 12 months.
Right here’s our up to date breakdown of inventory gross sales in 2024 by key people at Spotify:
- Martin Lorentzon, co-founder and board member, bought 1,488,364 shares for $556.77 million.
- Daniel Ek, co-founder and CEO, bought 950,000 shares for $319.999 million.
- Gustav Soderstrom, Spotify’s Chief Product and Know-how Officer, bought 247,465 shares for a complete of $91.1 million.
- Alex Norstrom, Chief Enterprise Officer, bought 188,129 shares for $62.98 million.
- Barry McCarthy, a former CFO of Spotify and a present director on the board, bought 94,250 shares for $39.96 million.
- Katarina Berg, Spotify’s Chief Human Sources Officer, bought 102,491 shares for $37.93 million.
- Paul Vogel, the now-former CFO, bought 77,931 shares for $19.36 million.
- Eve Konstan Mothner, Spotify’s Basic Counsel, bought 16,234 shares for $7.34 million.
- Dustee Jenkins, Chief Public Affairs Officer, bought 13,709 shares for $6.22 million.
- Ben Kung, the corporate’s VP, Monetary Planning and Evaluation, who served as Interim CFO this 12 months, bought 11,887 shares for $4.81 million.
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