Record labels reap more than $1 billion selling Spotify stakes

Two of the three major record labels stand to gain more than $1 billion after selling stakes in Spotify Technology SA, the streaming music company that went public last month.

Warner Music Group sold 75 percent of its stake in Spotify for approximately $400 million, CEO Steve Cooper said on a call with analysts Monday. Sony’s record label has sold about half of its stake for $750 million, according to a regulatory filing.

Spotify has proven to be a boon for the record labels, even as they remain a shadow of their former selves. Royalty checks from the streaming service have helped boost music-industry sales three years in a row.

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Lars M. B. Anthonisen is Global Account Lead @ Google. Previously, he held various digital marketing positions at media companies across Europe and Asia including Regional Digital Director at MediaCom APAC, CMO at Adform and Digital Manager at Universal McCann Worldwide.