"We welcome ValueAct as an investor in Spotify," a
spokesperson for the Swedish company said on Friday, without disclosing further
details on the investment.
Spotify's shares rose 3.5 percent to $125.
ValueAct Chief Executive Mason Morfit disclosed the
investment during a presentation at a Columbia University event in New York on
Friday, according to Bloomberg News, which first reported the stake.
ValueAct, which declined to comment, distinguishes itself
from other activist investors by preferring to stay behind the scenes and
rarely presents its investment ideas publicly.
It has been investing more frequently in Japan in recent
years, but has also made investments in US companies including Microsoft and
Citigroup.
Meanwhile, Spotify has invested heavily in building up its
podcast and audiobooks business in 2022, with operating expenses growing at
twice the rate of its revenue.
However, a challenging economic environment set the stage
for belt tightening, with Spotify Chief Executive Daniel Ek announcing layoffs
and an organisational restructuring in January.
In January this year, the company announced plans to cut 6
percent of its workforce, adding to the massive layoffs in the technology
sector in preparation for a possible recession.
"Over the last few months we've made a considerable
effort to rein in costs, but it simply hasn't been enough," Chief
Executive Daniel Elk said in a blog post announcing the roughly 600 job cuts.
Spotify's operating expenditure grew at twice the speed of
its revenue last year as the audio-streaming company aggressively poured money
into its podcast business, which is more attractive for advertisers due to
higher engagement levels. © Reuters
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