Warner Music liquidates Spotify shares

Warner Music Group has sold its Spotify equity resulting in a $504m profit


Warner Music Group has sold its entire stake in Spotify, gaining $504m in profit, with 12% credited to Spotify artists.

Steve Cooper, CEO of Warner Music, said: "I'm pleased to say that, in connection with the sale of our Spotify equity, an estimated $126 million will be credited to artist accounts on their June 30 royalty statements, which are issued around the world in August and September."

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The complete equity liquidation followed Warner Music's announcement in May where it sold 75% of its Spotify stock for $400m.

Cooper remarked: "Just so there won't be any misinterpretation about the rationale for our decision to sell, let me be clear: We're a music company, and not, by our nature, long-term holders of publicly traded equity.

"This sale has nothing to do with our view of Spotify's future. We're hugely optimistic about the growth of subscription streaming," he added.

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