News - 08/05/2018

Warner sells $400m of Spotify stock

Warner sells $400m of Spotify stock

Music giant Warner Music Group sold around three-quarters of its total equity of Spotify shareholding - that's to say $400m.

WMG boss Steve Cooper told the major music company’s investors that the firm had “sold about 75% of our Spotify equity for approximately $400m”. Warner’s share sale transaction was either made in April or the first few days of May (after the major’s last fiscal quarter), according to Cooper.

Speaking on a quarterly earnings call today (May 7), Cooper tackled the thorny issue of what will now happen to the Spotify equity banked by his company. The exec confirmed what Warner’s distributed label partners can expect as a result:

We’ll share these proceeds [the same way] we share revenue from actual streams and so-called digital breakage. In addition, we will be sharing equity proceeds with distributed labels – if [this is] included in their agreements with us.

According to "Music Business Worldwide", Warner’s digital breakage policy sees the major commit to paying out these ‘extra’ digital revenues to individual artists in accordance with their contractual royalty percentage.

© 2024 All rights reserved. Rockol.com S.r.l. Website image policy

Rockol

  • Rockol only uses images and photos made available for promotional purposes (“for press use”) by record companies, artist managements and p.r. agencies.
  • Said images are used to exert a right to report and a finality of the criticism, in a degraded mode compliant to copyright laws, and exclusively inclosed in our own informative content.
  • Only non-exclusive images addressed to newspaper use and, in general, copyright-free are accepted.
  • Live photos are published when licensed by photographers whose copyright is quoted.
  • Rockol is available to pay the right holder a fair fee should a published image’s author be unknown at the time of publishing.

Feedback

Please immediately report the presence of images possibly not compliant with the above cases so as to quickly verify an improper use: where confirmed, we would immediately proceed to their removal.