Windfall on the cards for Spotify staff
TT/The Local/gm · 12 Aug 2011, 13:37
Published: 12 Aug 2011 13:37 GMT+02:00
- Spotify service fails on music quality: report (22 Jul 11)
- Spotify aims high after US launch (15 Jul 11)
- Spotify signs deal with Virgin Media (07 Jul 11)
According to reports in Computer Sweden, in 2010 the employees were given the chance to pick up shares at a cost of 50 kronor ($7.7 )per share. Although it is unclear how many decided to invest, a total of 6.1 million was raised.
Those that did take up the offer have made a handsome profit – those shares are now worth 2,500 kronor a piece and the employees share of the company is now worth some 293 million.
It is a significant boost for the company, which has recently launched in the U.S. In less than 18 months Spotify’s valuation has tripled, to what analysts now estimate to be around 7 billion. Much of this can be attributed to an injection of capital from Russian Digital Sky Technologies and the American companies Kleiner Perkins and Accel.
However the company is still making heavy losses. The mother company, registered in Luxembourg posted losses of 293 million for 2010.
In Sweden things look more promising. In 2010 the Swedish subsidiary Spotify AB recorded sales of 165 million and made a profit of 50 million - compared with sales of 90 million and a 14 million profit the year before.
Meanwhile, Spotify Sweden AB, which takes care of ad sales, made sales of 87 million and a profit of 12 million.