Ted Sarandos, co-CEO of streaming giant Netflix, just sold a stack of Spotify shares.
That’s according to an SEC filing spotted by MBW, which shows Sarandos cashed out 17,710 common shares on Thursday (September 12).
The aggregate market value of Sarandos’ SPOT share sale was approximately USD $6 million.
According to the SEC document (see below), the sale of Sarandos’ 17,710 shares was handled by Morgan Stanley.
Sarandos is Netflix’s co-CEO and is credited with leading the company’s moves into streaming, international markets, and original programming.
He has been at Netflix since 2000 and was promoted from Chief Content Officer to co-CEO in 2020.
Sarandos has been a member of Spotify’s Board of Directors since September 13, 2016.
In addition to his role on SPOT’s board of directors, Sarandos serves on the board of directors of Netflix and serves as Chairman of the board of trustees for the Academy Museum of Motion Pictures and the Treasurer for the board of directors of Exploring the Arts.
He also serves on the board of trustees for the American Film Institute and is a member of the Executive Committee of the Academy of Television Arts and Sciences, as well as a Henry Crown Fellow at the Aspen Institute.
The SEC filing also reveals that the 17,710 shares sold by Sarandos were acquired via stock options held by the Netflix chief and Spotify Board member.
On June 12, Sarandos acquired 13,952 shares, and on September 12, he acquired 3,758 shares via a stock option exercise.
According to Spotify’s 2023 annual report, Sarandos still holds 24,317 in stock options.
Sarandos is the latest Spotify shareholder to cash out a pile of stock in the company.
On June 7, the company’s co-founder and former chairman Martin Lorentzon sold $81.5 million in Spotify shares.
The sale was done via Rosello Company Ltd., a Cyprus-registered holding company owned by Almatea, a Luxembourg-based firm whose sole shareholder is Lorentzon. The vast majority of Lorentzon’s shares in Spotify are held via Rosello.
On June 5, former Spotify CFO Barry McCarthy cashed out $10 million in SPOT stock – not long after stepping down as CEO of Peloton.
In April, Spotify co-founder CEO Daniel Ek sold 400,000 share units in Spotify, with an aggregate market value of $118.8 million.
The move marked the fourth time in the prior 12 months that Ek had cashed in some of his Spotify stock:
- In July 2023, Ek sold 675,000 shares for $100 million in proceeds;
- In October 2023, he sold 400,000 shares for $64.2 million in proceeds;
- And in February this year, Ek sold 250,000 shares for $57.5 million in proceeds
Daniel Ek and Martin Lorentzon are Spotify’s largest shareholdings.
Per Spotify’s latest 20-F, filed in February, as of the end of 2023, CEO Daniel Ek was the largest shareholder, with 30.86 million shares, or 15.65% of Spotify’s 197.14 million outstanding shares.
At Spotify’s share price of $337.5 at market close on Thursday (September 12), Ek’s shares would be worth $10.41 billion.
Lorentzon, meanwhile, held 21.53 million shares, or 10.92% of all shares, and those shares would be valued at $7.26 billion at the current share price.
Spotify’s share price is up nearly 79% year to date. The music streaming company posted its biggest-ever quarterly profit in the three months to end of June.
Spotify also saw its global Premium Subscriber base grow to 246 million paying users in Q2, after achieving net additions of 7 million subscribers during the quarter – up 1 million ahead of guidance.
SPOT’s market cap value as of Thursday, September 12, was USD $67.77 billion.
Read MBW’s recent guide to Who Owns Spotify in 2024 for a full picture of the streaming company’s ownership structure.Music Business Worldwide
