Spotify Founders Cash Out Over $1 Billion Amid Stock Surge
Spotify Technology SA's founders, Daniel Ek and Martin Lorentzon, have recently liquidated approximately $1 billion worth of the audio streaming giant's stock. The sale represents their largest combined stock divestitures since 2019.
According to data compiled by Bloomberg from regulatory filings, Ek and Lorentzon sold over 2.5 million shares of Spotify last year through US banks and have continued to reduce their stakes in recent weeks. Ek, Spotify's CEO, filed to sell shares worth approximately $37 million through JPMorgan Chase & Co. as part of a trading plan, while Lorentzon offloaded nearly $400 million of stock through Goldman Sachs Group Inc. in November.
Despite the stock sales, Ek and Lorentzon still own approximately 16% of Stockholm-based Spotify, amounting to the majority of their combined $22 billion fortune. The New York-listed shares of Spotify have surged 239% since the beginning of last year, significantly outperforming the S&P 500 Index.
The company's recent resurgence stems from its recovery from a slowdown in growth and the effects of the pandemic. In the fourth quarter of 2022, Spotify reported better-than-expected subscriber growth and eliminated approximately 1,500 jobs, enabling its first full-year profit.
Since the start of 2022, Ek and Lorentzon's combined net worth has increased by over $10 billion, primarily due to Spotify's stock boom. Beyond Spotify, Ek has diversified his investments into businesses focused on artificial intelligence and climate, as part of his goal to allocate $1 billion of his wealth to European startups.