Daniel Ek has a brand new shareholder to maintain pleased – and it’s one which comes with a popularity.

In line with a Bloomberg report, ValueAct Capital Administration introduced at a Columbia College occasion at this time (February 10) that it has acquired a shareholding in Spotify.

Spotify’s share worth was up by roughly 4% in pre-trading on the NYSE this morning following the report.

ValueAct CEO Mason Morfit didn’t verify the dimensions of the shareholding. Nonetheless, he mentioned that, in recent times, SPOT’s “working bills and funding for content material exploded”, however that the streaming firm was “now checking out what was constructed to final and what was constructed for the bubble”.

A Spotify spokesperson mentioned at this time: “We welcome ValueAct as an investor in Spotify.”

What’s significantly intriguing about ValueAct’s place in Spotify is that the previous firm has a historical past of nudging firms it invests in in direction of elevating shopper costs and bettering margins.

As cited in a word from William Packer (MD, Media & Web) at BNP Paribas Exane at this time, ValueAct took a stake in The New York Instances Group final 12 months and urged it to each reduce prices and lift costs.

In line with a report from Reuters printed final summer time, ValueAct acquired a 6.7% stake in The New York Instances Group.

Its different investments, in line with the ValueAct web site, embrace firms comparable to Adobe, Microsoft, and Motorola.

Packer’s BNPP word means that “activist stress at Spotify might speed up plans for the group to lift core music subscription costs which stay beneath key friends Apple and Amazon“.

Each Apple and Amazon Music have, up to now 4 months, raised their normal premium subscription worth within the US from $9.99 to $10.99 per thirty days.

Thus far, nevertheless, Spotify has refused to affix them in doing so.

How a lot leverage San Francisco-based ValueAct must affect Daniel Ek’s technique at Spotify stays to be seen.

In line with Spotify’s newest annual investor report, filed with the SEC up to now fortnight, Ek personally owned 31.7% of complete voting energy at Spotify on the finish of 2022.

His co-founder on the Swedish streaming service (and its former Chairman), Martin Lorenzton, owned 42.6% of complete voting energy.

Ek owned 16.5% of peculiar shares in Spotify, in line with the submitting. Lorentzon owned 11.1%.

The second greatest particular person holder of peculiar shares in Spotify on the shut of final 12 months was funding agency Baillie Gifford, which owned a 14.5% stake (see beneath).

Spotify introduced final month that it could be shedding 500 individuals globally.

Daniel Ek wrote in a letter to workers explaining the modifications: “As you might be effectively conscious, over the previous couple of months we’ve made a substantial effort to rein-in prices, however it merely hasn’t been sufficient. So whereas it’s clear this path is the precise one for Spotify, it doesn’t make it any simpler — particularly as we take into consideration the various contributions these colleagues have made.”

“Like many different leaders, I hoped to maintain the robust tailwinds from the pandemic and believed that our broad world enterprise and decrease danger to the impression of a slowdown in adverts would insulate us. In hindsight, I used to be too bold in investing forward of our income progress.”

Added Ek: “I take full accountability for the strikes that received us right here at this time.”Music Enterprise Worldwide