Spotify CEO and co-founder Daniel Ek sold another $37.3 million worth of company shares on Wednesday (February 5), capitalizing on the streaming giant’s record-high stock price following its first full year of profitability.
The transaction, disclosed in an SEC filing, involved 60,000 shares sold at Tuesday’s (February 4) closing price of $621.77 per share.
By Wednesday, Spotify’s stock surged to a new all-time high of $626, boosting the company’s market capitalization to $125.71 billion. Shares of the company are up 180.4% over the past year.
As MBW noted, Spotify’s market value has exceeded that of the major music companies. As of Wednesday, Universal Music Group, the world’s largest music rights company, which trades on the Amsterdam Euronext, had a market cap of $49.63 billion.
Warner Music Group, also publicly traded and listed on the NASDAQ, had a market value of $16.68 billion.
The third major, Sony Music, isn’t publicly traded (although its parent, Sony Group, is listed on the Tokyo Stock Exchange).
The stock rally was fueled by SPOT’s latest financial report. The company posted FY 2024 operating income of €1.4 billion ($1.46bn), marking a turnaround from a loss of €466 million ($485m) in 2023.
Ek’s latest divestment came two weeks after the SPOT CEO cashed out $29.3 million in company shares. To date, the Spotify boss has accumulated $634.6 million from share sales, including this week’s transaction, based on MBW calculations. In 2024 alone, Ek sold $376 million worth of Spotify shares.
Ek’s latest share sale marks the 13th time since July 2023 that he has cashed out some of his Spotify stock:
- In July 2023, Ek sold 675,000 shares for USD $100 million;
- In October 2023, he sold 400,000 shares for $64.2 million;
- In February 2024, Ek sold 250,000 shares for $57.5 million;
- In April 2024, Ek sold 400,000 shares for $118.8 million;
- In November 2024, Ek sold 75,000 shares for $35.8 million;
- In November 2024, Ek sold another 75,000 shares for $34.8 million;
- In November 2024, Ek sold 75,000 shares again, this time for $36.1 million;
- In December 2024, Ek sold another 75,000 shares $37 million;
- Also in December 2024, Ek sold 60,000 shares for $28.3 million;
- And again in December, Ek sold 60,000 shares for $27.7 million;
- In January 2025, Ek sold 60,000 shares for $27.8 million;
- Also in January 2025, Ek sold 60,000 shares for $29.3 million.
Ek has forgone a traditional salary since July 2017 in favor of a performance-based bonus scheme tied to growth metrics.
MBW has also been tracking share sales from Spotify co-founder Martin Lorentzon, who sold $556.8 million in company shares throughout 2024, owned primarily through his holding company Rosello Co. Ltd.
According to SPOT’s latest annual report for 2024, the co-founders maintain significant ongoing influence in the company. Ek maintained a 14.3% ownership stake with 29.1% voting power, while Lorentzon, who serves as a board director, held 9.8% of shares with 41.6% voting control as of December 31, 2024.
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