Is Spotify Negotiating To Invest In Universal Music?
Spotify CEO Daniel Ek refused to comment "on deal negotiations," when asked if the streamer was considering an investment in Universal Music Group. UMG corporate parent Vivendi is openly exploring investments in exchange for up to 50% of the world's largest music group.
During the earnings call Q&A Thursday morning, Ek was asked if Spotify was considering an investment in UMG, as well as, the advantages and disadvantages of owning a portion of a major content partner.
Rather than deny interest, Ek answered that he would make "no comments on deal negotiations." The Spotify CEO's choice of words seemed to imply interest, if not actual ongoing negotiations.
While sure to concern its other label partners, a Spotify UMG investment would not be out of character for Ek.
Much like Spotify's stock swap with Tencent or direct deals with artists, owning part of its largest content provider is the the kind of industry-disrupting move that the CEO and Spotify have favored in the past.