Big Tech
Investor ValueAct Takes Spotify Stake to Back Cost Cuts at the Music Streaming Leader
- It says operating expenses, content funding have “exploded”
- ValueAct CEO Mason Morfit disclosed position at event Friday
The Spotify logo on a laptop computer arranged in Hastings-on-Hudson, New York, US, on Wednesday, Jan. 25, 2023. S
Photographer: Tiffany Hagler-Geard/BloombergThis article is for subscribers only.
Investment firm ValueAct Capital Management has built a position in Spotify Technology SA, in a move that supports the music-streaming company’s strategy led by Chief Executive Officer Daniel Ek to tighten its spending and become more efficient.
ValueAct Chief Executive Officer Mason Morfit disclosed the position — which he described as the firm’s “newest investment” — during a presentation at a Columbia University event Friday in New York, touting the music-streaming giant’s innovative business model. Shares jumped as much as 4.7% to $126.55.