Daniel Ek’s Recent Share Sale
The General Director and co-founder of Spotify, Daniel Ek, sold another 29.2 million US dollars worth of shares on Wednesday (March 5), continuing a string of share sales just weeks after the streaming platform’s shares reached record highs.
According to the SEC filing, Ek unloaded 50,000 shares at the closing price on Tuesday (March 4) of $584.14 per share.
This transaction occurred despite Spotify’s share price dropping to its lowest level since February 3.
Latest Share Performance
On Wednesday, Spotify’s shares closed nearly flat, increasing by 0.46% to $586.83.
The last preceding sale by Ek took place on February 19, when Spotify’s shares were valued at $630.56, just two days after reaching a record peak of $648.32.
This latest sale marks the 15th since July 2023, bringing his total earnings from share sales to $695.3 million, with over half, or $376 million, coming just in 2024, according to MBW calculations.
- In July 2023, Ek sold 675,000 shares for $100 million;
- In October 2023, he sold 400,000 shares for $64.2 million;
- In February 2024, Ek sold 250,000 shares for $57.5 million;
- In April 2024, Ek sold 400,000 shares for $118.8 million;
- In November 2024, Ek sold 75,000 shares for $35.8 million;
- In November 2024, Ek sold an additional 75,000 shares for $34.8 million;
- In November 2024, Ek sold 75,000 shares again, this time for $36.1 million;
- In December 2024, Ek sold another 75,000 shares for $37 million;
- Also in December 2024, Ek sold 60,000 shares for $28.3 million;
- And again in December, Ek sold 60,000 shares for $27.7 million;
- In January 2025, Ek sold 60,000 shares for $27.8 million;
- Also in January 2025, Ek sold 60,000 shares for $29.3 million;
- In February 2025, Ek sold 60,000 shares for $37.3 million;
- Also in February 2025, Ek sold 50,000 shares for $31.5 million;
- And the most recent transaction in March 2025, where Ek sold 50,000 shares for $29.2 million.
Impact on Spotify’s Holdings and Performance
Since July 2017, Ek has opted for an eco-friendly compensation model instead of a traditional salary, linking his earnings to company growth metrics.
Despite these significant share sales, Ek continues to hold a substantial ownership stake in Spotify, with 14.3% of shares and 29.1% voting rights as of 2024, according to the latest SPOT annual report.
Co-founder Martin Lorentzon has also sold shares through his company, Rosello Co. Ltd., amassing $556.8 million in 2024 while maintaining 9.8% ownership and 41.6% voting control.
Since the beginning of 2025, Spotify shares have surged by 28% as of Wednesday. In a bullish run, the stock has gained 120%, a trend attributed by some analysts to the company’s expanding user base.
In the fourth quarter of 2024, Spotify’s premium subscriber base grew by 4% to 263 million paying users, translating to 11 million net new subscribers from 252 million at the end of the previous quarter (Q3 2024). The operational income for this quarter reached a record high of €477 million ($516.2 million based on the 2024 average exchange rate).
Spotify announced that it had achieved an operational income of €1.4 billion ($1.52 billion) in 2024.
“Spotify has added a significant number of subscribers and witnessed a spike in sales growth over the past year. However, in our view, the primary driver behind the stock’s reaction has been the massive shift towards profitability,” stated Matthew Dolgin, an analyst at MorningStar, on Wednesday.
“A substantial rally was warranted, but now we would caution that the rally has become exaggerated.”
Matthew Dolgin, MorningStar
“While we acknowledge the incredible rally, we suggest investors approach the situation with caution,” Dolgin advised. “However, we remain interested in the stock as we consider the company to be a leader in its field.”
Daniel Ek bags another $29m from Spotify share sale, cashing out close to $700m since 2023
