This post was originally published on this site
https://i-invdn-com.investing.com/news/LYNXMPEE3C087_M.jpg
ValueAct Capital Management, an investment company, has accumulated a position in music streaming giant Spotify (NYSE:SPOT), according to Bloomberg on Friday.
The move reportedly supports the company’s strategy led by Chief Executive Officer Daniel Ek to reign in its spending and become more efficient.
Mason Morfit, the Chief Executive at ValueAct, is said to have announced the position during a presentation at a Columbia University event on Friday in New York. Morfit said it is his firm’s “newest investment” and pointed to Spotify’s innovative business model as one of the reasons they like the company.
He also stated that Spotify’s superpower was “combining engineering breakthroughs with organizational abilities,” adding that the business was able to organize creators and copyright owners to build an “entirely new economic model that benefited everyone involved.”
Bloomberg also quoted Morfit as saying that during Spotify’s boom, “it applied these powers to new markets like podcasts, audiobooks and live chatrooms.”
“Its operating expenses and funding for content exploded. It is now sorting out what was built to last and what was built for the bubble,” he added.
The ValueAct CEO didn’t disclose the size of the firm’s position in Spotify, but a spokesman for Spotify told Bloomberg that the company welcomes ValueAct as an investor.
