Spotify Technology SA

Spotify Technology SA

Spotify Technology SA

Overview
Date Founded

2007

Headquarters

42-44, avenue de la Gare,Luxembourg 1610

Type of Company

Public

Employees (Worldwide)

1,001 - 5,000

Industries

Internet Software & Services
Entertainment

Company Description

Spotify Technology SA is a digital music service offering music fans instant access to a world of music. The company operates through the following segments: Premium and Ad-Supported. The Premium segment provides subscribers with unlimited online and offline high-quality streaming access of music and podcasts on computers, tablets, and mobile devices, users can connect through speakers, receivers, televisions, cars, game consoles, and smart watches. It also offers a music listening experience without commercial breaks. The Ad-Supported segment provides users with limited on-demand online access of music and unlimited online access of podcasts on their computers, tablets, and compatible mobile devices. It also serves both premium subscriber acquisition channel and a robust option for users who are unable or unwilling to pay a monthly subscription fee but still want to enjoy access to a wide variety of high-quality audio content. The company was founded by Daniel Ek and Martin Lorentzon in April, 2006 and is headquartered in Luxembourg.

Executives & Employees

Co-Founder, Chairman & Chief Executive Officer

Co-Founder & Director

Chief Financial Officer

Chief Legal Officer & General Counsel

Chief Marketing Officer

Chief Research & Development Officer

Chief Human Resources Officer

Chief Freemium Business Officer

Global Head of Markets

Chief Content Officer

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Owners & Shareholders
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Morgan Stanley Investment Management strives to provide outstanding long-term investment performance and best-in-class service to a diverse client base, which includes governments, institutions, corporations and individuals worldwide. Their global structure leverages the breadth, depth and access of the Morgan Stanley franchise to provide their clients a comprehensive suite of investment management solutions.

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Baillie Gifford is an active, team-oriented, research-based manager which is completely focused on delivering long-term returns. The firm’s investment philosophy focuses on growth while their universe is global. They employ bottom-up conviction to portfolio construction. Their diversified strategies maximize investment opportunities, aiming to achieve steady returns. For equities, Baillie Gifford’s analysts conduct qualitative, fundamental analysis to identify the most competitive, innovative and efficient growth companies. For multi-asset strategy, the firm invests in various asset classes such as listed equities, property, high yield credit, commodities, emerging market government bonds and insurance linked securities. For fixed-income, Baillie Gifford invests in government bonds and currencies, emerging market bonds, investment grade and high yield.

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Morgan Stanley Asia Ltd. (MSA) is a broker/dealer headquartered in Kowloon and was founded in 1987. They are a subsidiary of Morgan Stanley Asia Securities Products LLC and their ultimate parent is Morgan Stanley (NYSE: MS). MSA provides institutional securities such as equities, fixed income, derivatives and research.

Recent Transactions
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Spotify Technology SA purchases SoundBetter from Foundry Group LLC, AOL Ventures, Inc., 500 Startups Management Co LLC

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Spotify Technology SA purchases Gimlet Media, Inc. from Stripes LLC/NY, Lowercase Capital LLC, Knight Foundation Venture Capital, WPP Plc /Private Equity, Betaworks Investments LLC, Cross Culture Ventures Management LLC

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Spotify Technology SA purchases Anchor FM, Inc. from Accel Partners LLC, Omidyar Network, GV Management Co. LLC, SV Angel LLC, ENIAC Ventures Management LLC/NY, Tuesday Capital, Acequia Capital Management LLC, Homebrew Management LLC, Betaworks Investments LLC

Transaction Advisors
Legal Advisor

Advised onSpotify Technology SA purchases SoundBetter from Foundry Group LLC, AOL Ventures, Inc., 500 Startups Management Co LLC

Investment Advisor

Advised onSpotify Technology SA raised money in a private placement transaction

Investment Advisor

Advised on purchases Spotify Technology SA

Legal Advisor

Advised onSpotify Technology SA, Spotify AB purchase The Echo Nest Corp. from Matrix Management Corp., Norwest Venture Partners, Commonwealth Capital Ventures

Counsel

Advised onSpotify Technology SA purchases SoundBetter from Foundry Group LLC, AOL Ventures, Inc., 500 Startups Management Co LLC

Legal Advisor

Advised on purchases Spotify Technology SA

Advisors & Consultants
Advisor

Founder at Atom Factory

Legal Advisor

Partner at Wilson Sonsini Goodrich & Rosati PC

Legal Advisor

Partner at Davis Polk & Wardwell LLP

Clients

Warner Music Group Corp. engages in the publishing and recording of music. It operates through the Recorded Music and Music Publishing segments. The Recorded Music segment involves in selling, marketing, distributing, and licensing of recorded music produced by the company's recording artists. The Music Publishing segment acts as a copyright owner and/or administrator of the musical compositions and generates revenues related to the exploitation of musical compositions. The company was founded on November 21, 2003 and is headquartered in New York, NY.

AT&T, Inc. is a holding company, which engages in the provision of telecommunications media and technology service. It operates through the following segments: Communications, WarnerMedia, Latin America and Xandr. The Communications segment provides services to businesses and consumers located in the U.S., or in U.S. territories, and businesses globally. The WarnerMedia segment develops, produces and distributes feature films, television, gaming and other content over various physical and digital formats. The Latin America segment provides entertainment and wireless services outside of the U.S. The Xandar segment provides advertising services. The company was founded in 1983 and is headquartered in Dallas, TX.

Eventbrite, Inc. provides event management services encompassing online ticketing, event hosting, organization, promotion and advertising. The company was founded by Alan Michael Braverman, Renaud Visage, Kevin E. Hartz and Julia Hartz in 2006 and is headquartered in San Francisco, CA.

Key Stats and Financials As of 2019
Market Capitalization
$48.4B
Total Enterprise Value
$25.8B
Earnings Per Share
$-1.15
Revenue
$7.57B
Net Profit
$-208M
EBITDA
$36.9M
EBITDAMargin
0.49%
Total Debt
$698M
Total Equity
$2.29B
Enterprise Value Sales
3.41x
Enterprise Value EBITDAOperating
698.21x
TEVNet Income
-123.88x
Debt TEV
0.03x
Three Year Compounded Annual Growth Rate Of Revenue
36.83%
Investments
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Tencent Music Entertainment Group engages in the provision of online music entertainment platform. Its platform comprises of online music, online karaoke, and music-centric live streaming products. The company was founded by Jia Xin Peng on June 6, 2012 and is headquartered in Beijing, China.

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Marshmallow Financial Services Ltd. is a startup company. The firm provides financial services. The company was founded by David Goate, Oliver Kent-Braham and Alexander Kent-Braham in 2017 and is headquartered in London, the United Kingdom.

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Canopy Crest Corp. develops an online application. The Canopy App is used to discover the new content in internet without email log in or accounts. The company was founded by Brian Whitman and is headquartered in Brooklyn, NY.

Investors
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Baillie Gifford is an active, team-oriented, research-based manager which is completely focused on delivering long-term returns. The firm’s investment philosophy focuses on growth while their universe is global. They employ bottom-up conviction to portfolio construction. Their diversified strategies maximize investment opportunities, aiming to achieve steady returns. For equities, Baillie Gifford’s analysts conduct qualitative, fundamental analysis to identify the most competitive, innovative and efficient growth companies. For multi-asset strategy, the firm invests in various asset classes such as listed equities, property, high yield credit, commodities, emerging market government bonds and insurance linked securities. For fixed-income, Baillie Gifford invests in government bonds and currencies, emerging market bonds, investment grade and high yield.

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Founder at Startup Management

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President at Guild Insurance Solutions, Inc.

Suppliers
Cardlytics, Inc. Internet Software & Services | Atlanta, GA

Cardlytics, Inc. engages in the development of marketing solutions through its purchase intelligence platform. It operates through the Cardlytics Direct and Other Platform Solutions segments. The Cardlytics Direct segment represents its proprietary native bank advertising channel. The Other Platform Solutions segment includes solutions that enable marketers and marketing service providers to leverage the power of purchase intelligence outside the banking channel. The company was founded by Scott D. Grimes, Lynne M. Laube, and Hans Theisen on June 26, 2008 and is headquartered in Atlanta, GA.

Coupa Software, Inc. Accounting & Financial Services | San Mateo, CA

Coupa Software, Inc. engages in the provision of business spend management (BSM) solutions. Its products include invoice, expense, pay, spend analysis, strategic sourcing, contract management contingent workforce, and supplier management. The company was founded by Noah Eisner and Dave Stephens in 2006 and is headquartered in San Mateo, CA.

American Society of Composers, Authors & Publishers Entertainment | New York, New York

American Society of Composers Authors & Publishers operates as a membership association. It is composed of U.S. composers, songwriters, lyricists, and music publishers of every kind of music. The firm protects the rights of its members by licensing and distributing royalties for the non-dramatic public performances of their copyrighted works. The company is headquartered in New York, NY.

Competitors
Facebook, Inc. Internet Software & Services - Menlo Park, CA

Facebook, Inc. operates as a social networking company worldwide. The company engages in the development of social media applications for people to connect through mobile devices, personal computers, and other surfaces. It enables users to share opinions, ideas, photos, videos, and other activities online. The firm's products include Facebook, Instagram, Messenger, WhatsApp, and Oculus. The company was founded by Mark Elliot Zuckerberg, Dustin Moskovitz, Chris R. Hughes, Andrew McCollum, and Eduardo P. Saverin on February 4, 2004 and is headquartered in Menlo Park, CA.

Access Industries, Inc. - New York Private Equity & Venture Capital - New York, New York

Access Industries is a privately held industrial group with long-term holdings worldwide. Their industrial focus spans four sectors: Natural Resources and Chemicals, Media and Telecommunications, Venture Capital/Technology, and Real Estate. Founded in 1986 by Len Blavatnik, a global entrepreneur and philanthropist, Access is an international industrial concern with strategic investments in the United States, Europe, and South America. Their headquarters is in New York City with additional offices in London and Moscow.

Tencent Holdings Ltd. Internet Software & Services - Shenzhen, China

Founded in November, 1998, Tencent has grown into one of China's largest and most used Internet service portal. Since its establishment over the last decade, Tencent has maintained steady growth under its user-oriented operating strategies. On June 16, 2004, Tencent Holdings Limited (SEHK 700) went public on the main board of the Hong Kong Stock Exchange. It is Tencent's mission to enhance the quality of human life through Internet services. Presently, Tencent is providing value-added Internet, mobile and telecom services and online advertising under the strategic goal of providing users with "one-stop online lifestyle services". Tencent’s leading Internet platforms in China – QQ (QQ Instant Messenger), QQ.com, QQ Games, Qzone, 3g.QQ.com, SoSo, PaiPai and Tenpay – have brought together China's largest Internet community, to meet the various needs of Internet users including communication, information, entertainment, e-commerce and others. As of Sep 30, 2011, the active QQ users accounts for QQ IM amounted to 711.7 million while its peak concurrent users reached 145.4 million. The development of Tencent has profoundly influenced the ways hundreds of millions of Internet users communicate with one another as well as their lifestyles. It also brings possibilities of a wider range of applications to the China’s Internet industry. Looking forward, Tencent remains committed to enhancing its development and innovation capabilities while strengthening its nationwide branding for its long term development. More than 50% of Tencent employees are R&D staff. Tencent has obtained patents relating to the technologies in various areas: instant messaging, e-commerce, online payment services, search engine, information security, gaming, and many more. In 2007, Tencent invested more than RMB100 million in setting up the Tencent Research Institute, China's first Internet research institute, with campuses in Beijing, Shanghai, and Shenzhen. The institute focuses on the self-development of core Internet technologies, in pursuing its development and innovation for the industry. Tencent's long term vision is to become the most respected Internet enterprise. In order to fulfill corporate social responsibilities and to promote civil Internet communities, Tencent has been actively participating in public charity programs. In 2006, Tencent inaugurated the Tencent Charity Fund, the first charity foundation set up by a Chinese Internet enterprise, and the public charity website gongyi.qq.com. The website focuses on youth education, assisting impoverished communities, care for the disadvantaged, and disaster relief. Tencent has currently begun a number of public charity projects across China. It strives to help build a harmonious society and to become a good corporate citizen

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