Warner Music Group, the US-based entertainment and record label conglomerate, has made a huge announcement this week. The company has just announced that it has sold its entire stake in Spotify, a music streaming service.
As mentioned earlier in Variety, the New York-based firm has confirmed that it has sold its entire stake in the music streaming service. The total value of the share is said to be at $504 million. The company made the big announcement in its recent earnings call last Tuesday.
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Warner Music CEO Steve Cooper also released a statement about the news, saying that the company’s decision does not reflect a lack of confidence in Spotify’s future. The CEO clarifies that the decision to sell its shares has nothing to do with the company’s view of Spotify’s financial future. He pointed out that his company is just optimistic about the massive growth of music subscription streaming.
Warner Group is not the only company that has sold its shares. Japan-based Sony Music has also sold approximately 50% of its shares for an estimated value of $750 million. Sony revealed the sellout in a public filing in May. On the other hand, Universal Music Group has not yet sold its stakes, as it waits for a final decision from its parent company Vivendi.
About Warner Music Group
Founded in 1958 and based in New York City, New York, Warner Music Group is an American multinational entertainment and record label conglomerate. Warner Music Group is one of the \”big three\” recording companies and the third largest in the global music industry, following Sony Music Entertainment and Universal Music Group (UMG). Warner Music Group was listed on the NYSE until May 2011, when it announced its sale to Access Industries. The deal with Access Industries was completed in July 2011.
The company also owns and operates some of the largest in the market. These include Atlantic Records, Parlophone, and Warner Bros. Records. In addition, the company also owns Warner/Chappell Music, one of the largest music publishers in the market.
Warner Music is currently expanding its business to digital media operations, starting with its acquisition of Uproxx Media Group in August 2018.
Founded in 2006 and based in Stockholm, Sweden, Spotify is a popular music streaming service that provides DRM-protected content from record labels and media companies. Spotify offers two type of services, the freemium service is a free service but with advertisements or limitations, while the paid subscription provides additional features, such as improved streaming quality and music downloads.
Spotify is currently available on Apple computers, Windows, Linux computers, iOS-powered devices, Windows Mobile, Android-powered devices, PlayStation and Xbox One.