Spotify Co-Founders Selling Off More Shares: Report
Spotify co-founders Daniel Ek and Martin Lorentzon have signaled their intention to sell off a small portion of their holdings in the company, according to a report by Swedish tech news site Di Digital. The site reports that the sale will cut Ek's holdings to 8.3 percent from 8.8 percent and Lorentzon's to 11.8 percent from 12.2 percent, respectively.
Citing SEC filings, which have not been made public, Di Digital reports that between July and September, Ek sold shares worth approximately $61.8 million and intends to move another $66.3 million worth of shares in the coming months. Lorentzon, who sold shares worth $58.5 million in the last few months, will sell an additional $31.9 million worth of shares.
A Spotify rep confirmed that Ek "will sell a small share" of his shares in the next nine months "as part of his long-term financial strategy."
The sale will not alter the makeup of Spotify's largest shareholders, with Lorentzon retaining his status as No. 1 and Ek No. 3. The company's second biggest shareholder remains Chinese tech giant Tencent, which acquired 10 percent via a stock swap last year. That company's music arm, Tencent Music, announced this week it will file for a U.S. IPO.
Spotify's stock is down nearly 1.5 percent in Friday morning trading, at $166 per share.