Investors are bullish on the streaming service's plans with Kim Kardashian, Joe Rogan and Warner Bros.
Spotify’s hard push into the podcasting business, culminating this week with two major deals, is proving to be music to investors’ ears. Between Wednesday’s announcement of Spotify’s deal with Kim Kardashian West and Thursday’s (June 18) news of a multi-year, multi-project with Warner Bros., Spotify’s share price jumped 23% to an all-time high of $228.16 in midday trading before closing at $225.28.
Since Spotify announced its exclusive licensing deal with Joe Rogan for his podcast, The Joe Rogan Experience, on May 19, Spotify’s share price has soared 38.5% and lifted its market capitalization $12.41 billion from $30.02 billion to $42.43 billion. At that valuation, Spotify’s market value is more than twice as much as Warner Music Group, the lone major music group traded on a stock exchange, at $19.24 billion on Thursday, and considerably higher than Universal Music Group’s $33.3 billion valuation based on Tencent’s investment in March.