Spotify co-founder Daniel Ek said on Friday that he’s pouring $50 million into the music streaming service, driving its stock price up by more than 3% to a high of $108.98 per share during regular trading hours.
The momentary rise, however, is a blip on the radar for Spotify, which has taken a beating this year — in part over its recent, weaker-than-expected growth forecasts (just like plenty of other streaming and software firms).
As for the reasoning behind Ek’s purchase, the Spotify CEO wants you to know he believes. “I’ve always been vocal about my strong belief in Spotify and what we are building. So I am putting that belief into action this week by investing $50M in $SPOT. I believe our best days are ahead…,” he said, adding that he didn’t have to tell you about it, but wanted to.
Should Ek’s vote of confidence be measured by his other recent equity deals, then perhaps the CEO’s faith in Spotify is surpassed by his support for the military industrial complex. In November, Ek rattled some artists and subscribers when his investment firm, Prima Materia, put roughly $113 million (€100 million) into Helsing. While the artificial intelligence company’s website is sparse, Financial Times reported at the time that Helsing aims to “produce live maps of battlefields.” Along with the nine-figure deal, Ek joined the board of the one-year-old firm, whose customers include the British, French and German militaries.
In any event(!), it seems nobody believes in Spotify quite like Spotify itself does. In August, the streaming giant said it would spend as much as $1 billion rebuying its shares over the next several years, outshining both of Ek’s recent deals.