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Spotify Is Acquired By Ctivist Investor ValueAct

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Spotify Is Acquired By Ctivist Investor ValueAct

(CTN News) – At a time when Spotify Technology SA (SPOT.N), a Brazilian company that specializes in audio streaming, is looking for ways to reduce costs, ValueAct Capital Management has taken an ownership stake in the company.

According to a statement issued by a spokesperson from Spotify on Friday, the company was pleased to welcome ValueAct as a new investor in the company.

In the statement, there was no further information about the investment that was disclosed.

A 3.5% increase was seen in Spotify’s shares in early trade, with the share price rising to $125 per share.

On Friday, ValueAct’s Chief Executive Officer Mason Morfit revealed to a group at Columbia University that the company had invested in the firm as part of its presentation. In the first instance, Bloomberg News broke the story of this news, which was first reported by them.

While other activist investors tend to remain behind the scenes while presenting their investment ideas publicly, ValueAct, which declined to comment, tends to stay behind the scenes. It rarely presents its investment ideas publicly, setting it apart from its peers.

Recent years have seen the company invest more frequently in Japan; however, the company has also made investments in companies based in the United States, including Microsoft Corp (MSFT.O) and Citigroup Inc (C.N).

Consequently, Spotify has invested heavily in developing its podcast and audiobook business in 2022.

It expects that the company’s operating expenses in that year will be twice as high as its revenue growth for that period.

As a result of the challenging economic environment, Spotify CEO Daniel Ek announced layoffs and organizational restructuring in January, which resulted in the company reducing its expenses as a result of the challenging economic environment.

Is Spotify free really free?

Is Spotify Free really free? Yes, it’s true – free version won’t cost you a thing. However… There are a few restrictions when compared to the paid version, Spotify Premium, so Free is free in terms of monetary cost to the user but perhaps not free in terms of convenience.

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Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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