Tuesday, March 20, 2018

Daniel Ek could net up to $2bn from Spotify share sales when company goes public (if he wants to) | Music Business Worldwide

Spotify CEO and Chairman Daniel Ek is permitted to sell 15.8m shares in Spotify when the company goes public on April 3 – a haul which could be worth anywhere up to $2bn.

The news was revealed today (March 20) in a fresh amendment filing from Spotify with the US Securities and Exchange Commission (SEC) – as first reported by Reuters and further examined by MBW.

The filing shows that Ek has 15.8m ordinary shares being registered for a possible resale in the week Spotify goes public.

The most recent private trades of Spotify shares have ranged between $48.93 to $131.88 so far in March, according to today’s updated filing. That would mean Ek’s potential resale haul could land anywhere between $773m and $2bn.

Ek’s fellow co-founder in Spotify, Martin Lorentzon, has 21.7m shares eligible for resale, according to the document – a holding currently worth somewhere between $1bn and $2.8bn.

CFO Barry McCarthy has 1.2m shares he could sell, which would currently be worth between $59m and $158m.

None of the three executives are obliged to sell these shares if they don’t wish to. (You can see who’s registered what in the right-hand column below.)

In total, Ek owns 49.6m ordinary shares, with Lorentzon on 23.6m.

Spotify says in its new filing amendment that it expects current shareholders to sell up to 55.7m ordinary shares  in total when the firm goes public.

At current private share value, that could see somewhere between $2.7bn and  $7.3bn change hands.

Regardless of the number of shares he sells or keeps, Daniel Ek will retain a 37% voting power in Spotify.

Martin Lorentzon maintains a 43.5% share of voting power.

 Music Business Worldwide

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