According to Swedish news site Di Digital, Spotify’s founders are selling more of their shares in the company. This is set to bring the total value of the sale to nearly $2 billion SEK (worth over $221 million USD at the time of reporting) when accounting for the share sales earlier this year.
The company’s founders consist of Daniel Ek and Martin Lorentzon, two Swedish entrepreneurs that founded the platform in 2006. Despite the sale, both still retain a significant stake in the company.
Spotify’s founders continue their recent share sale
In the last three months, Lorentzon sold shares for SEK 530 million (over $58 million USD), Di Digital reported (note: publication is in Swedish). Now, cited documents from the U.S. Securities and Exchange Commission purportedly show that Lorentzon intends to sell another SEK 288 million (nearly $32 million USD) worth of Spotify shares.
Ek, on the other hand, serves as the company’s CEO and reportedly intends to sell a further SEK 600 million (around $66 million USD) worth of shares. This is slightly more than his sale over the last few months, as he sold the equivalent of SEK 560 million ($62~ million USD) since July.
Together, they have sold over $120 million USD worth of shares in the company. Moving forward, it appears that they intend to almost double this figure, bringing the total value of the sale to over $221 million USD, according to current conversion rates.
Neither co-founder risks losing control of Spotify
Despite the sale, both co-founders will still own a significant stake in the company for the foreseeable future. Lorentzon will own 11.8 percent of the company following the sale, while Ek will own 8.3 percent.
Ek and Lorentzon strengthened their control over Spotify prior to selling some of their shares. Purportedly, this involved taking over voting rights from large owners such as multinational investment holding conglomerate Chinese Tencent and Tiger Global, a U.S. hedge fund.