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.