Warner Music Group got burned by its cash investments in startups like Lala and Imeem, but catalog licensing can just as easily be traded for equity. That could be an operating principle behind major label stakes in Spotify, though sources conflict on the equity structures involved.
Citing an "unverified capitalization table," TechCrunch claims that big labels plus indie aggregator Merlin own a total of 17.3 percent of the startup, purchased for 8.8 million euros ($12.4 million). Separate sources, including ComputerSweden, claim that the stakes were not acquired for meaningful levels of cash, leaving licensing as the bigger chip. Meanwhile, recent regulatory disclosures by Warner Music Group - which contain sections on equity investments - offer no mention of Spotify.
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