Activist investment firm ValueAct Capital has grabbed a stake in Spotify, with the head of the fund arguing that costs at the streaming music service had ‘exploded’.
Mason Morfit, boss of the San Francisco-based investment fund, said his focus would be on ‘sorting out what was built to last and what was built for the bubble’.
Although it did not reveal the size of the stake, ValueAct is the first prominent activist to publicly disclose a Spotify investment.
Growing costs: Spotify losses ballooned to £380m last year as it made heavy investments in star-studded podcasts
The fund, which is notorious for pushing changes at large organisations, took a 6.7 per cent stake in the New York Times Company last year, where it has pushed leaders to boost revenue by putting a greater focus on subscriptions.
Spotify losses ballooned to £380m last year as it made heavy investments in star-studded podcasts, including Prince Harry and Meghan’s Archetypes – a deal thought to be worth £20m.
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