Spotify CEO and co-founder Daniel Ek has launched into 2025 with another significant financial move.
Ek sold a further USD $27.8 million worth of company shares on Wednesday (January 8), continuing a pattern of substantial stock transactions.
Since Ek cashed out a tranche of Spotify shares for the first time in July 2023, he has banked around USD $568 million from SPOT stock sales in total (including the latest transaction), according to MBW calculations.
This week’s cash-out comes as Ek continues to capitalize on Spotify’s surging stock price, which peaked to an all-time high on December 4, 2024, when it surpassed $500.
When Spotify floated on the New York Stock Exchange in April 2018, the opening price of it shares was $165.90.
According to a new SEC filing spotted by MBW, Ek’s latest transaction involved the sale of 60,000 shares at the market price of $463.93.
The latest transaction arrives just two weeks after Ek cashed out $27.72 million in shares shortly before the holiday season, on December 23.
These recent transactions capped off a strong year of share sales for the Spotify CEO, with his calendar 2024 transactions totaling $376 million, according to MBW’s calculations.
Ek’s latest share sale marks the eleventh time since July 2023 that he has cashed out some of his Spotify stock:
- In July 2023, Ek sold 675,000 shares for USD $100 million in proceeds;
- In October 2023, he sold 400,000 shares for $64.2 million in proceeds;
- In February 2024, Ek sold 250,000 shares for $57.5 million in proceeds;
- In April 2024, Ek sold 400,000 shares for $118.8 million in proceeds;
- In November 2024, Ek sold 75,000 shares for $35.8 million in proceeds;
- In November 2024, Ek sold another 75,000 shares for $34.8 million in proceeds;
- In November 2024, Ek sold 75,000 shares again, this time for $36.1 million in proceeds;
- In December 2024, Ek sold another 75,000 shares $37 million in proceeds;
- Also in December 2024, Ek sold 60,000 shares for $28.3 million in proceeds;
- And again in December, Ek sold 60,000 shares for $27.7 million in proceeds.
Combined with this week’s $27.8 million cash-out, that all comes to $568 million.
However, Ek has opted to forgo a traditional salary since July 2017, instead aligning his financial interests directly with the company’s market performance.
MBW noted in 2018 that Ek eschewed a traditional salary in favor of a performance-based bonus scheme tied to specific growth metrics.
MBW has also been tracking share sales from Spotify co-founder, Martin Lorentzon. Lorentzon’s SPOT share sales, often conducted via his Rosello company, amounted to $556.8 million across 2024.
Lorentzon, however, didn’t divest any shares in December.
As of December 31, 2023, Ek and Lorentzon held a 15.6% and 10.9% stake in the company, respectively, with voting powers of 30.5% and 42.7%, respectively, according to Spotify’s 2023 annual report. Lorentzon also serves on Spotify’s board as a director.
The transactions indicate the executives’ confidence in Spotify’s future and amid broader industry optimism about streaming services’ potential for sustainable profitability, with Spotify leading market share in most regions globally. The company continues to expand its offerings beyond music, investing heavily in podcasts, audiobooks and even videos, while exploring new revenue streams.
Looking ahead, Spotify is scheduled to announce its Q4 2024 financial results on February 4. The company’s Q3 guidance projected quarterly revenues of EUR €4.1 billion (USD $4.2 billion) and an operating profit of €481 million for Q4. If these targets are met, Spotify will have achieved annual revenues of approximately €15.5 billion and an operating profit of €1.37 billion for 2024.
As of Wednesday (January 8), Spotify’s share price stands at $479.73, maintaining a robust market capitalization of $96.33 billion.
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