Interesting move. Warner Music Group comment on the sale:
This sale has nothing to do with our view of Spotify’s future. We’re hugely optimistic about the growth of subscription streaming, we know it has only just begun to fulfill its potential for global scale. We fully expect Spotify to continue to play a major role in that growth.
Odd to get out if their confidence is so high. I found the logic confusing. You can read more about the WMG earnings call here.
Could they be considering a streaming venture of their own? Or could divesting enable them to get better deals from Apple in some way?
“Take the money & run.” strategy
Looks like the vested labels are just cashing out from the IPO back in April.
Warner Music Group sold 100% = $504 million
Sony Music sold approximately 50% = $750 million
Merlin sold 100% = $125 million
Universal Music Group/Vivendi planning to sell 50% = ?
Maybe it has to do with how after over a decade Spotify still haven’t managed to turn a profit?