Warner Music Group has liquidated its entire equity in Spotify, bringing a grand total cash-out of $504 million.
Warner Music Group has seen a major profit gain in the last economic quarter. This sudden hike in cash in the third quarter sees the company make a net gain of $378 million, including $126 million in artists payouts.
This profit is thanks to the complete liquidation of WMG’s shares in Spotify. WMG’s Label CEO Stephen Cooper, speaking with Digital Music News, said, “The sale has nothing to do with our view of Spotify’s future,” and that they were “hugely optimistic about the growth of subscription streaming.”
Spotify reported a net loss of $461 million last month (July). That came after Sony and Warner sold over $1 billion in shares in the streaming giant in May.