Spotify Execs Cash In After Announcing Pre-Holiday Layoff
Video Credit: Wibbitz Top Stories - Duration: 01:30s - Published
Spotify Execs Cash In After Announcing Pre-Holiday Layoff
Spotify Execs Cash In , After Announcing , Pre-Holiday Layoff.
'The Guardian' reports that one of Spotify's top executives
sold over $9 million in shares following a surge in value
from the announcement of a massive layoff to cut costs.
According to filings with the U.S. Securities and Exchange
Commission, Spotify's chief financial officer, Paul Vogel,
was just one of several senior executives to cash in.
.
According to filings with the U.S. Securities and Exchange
Commission, Spotify's chief financial officer, Paul Vogel,
was just one of several senior executives to cash in.
.
The company layoff will reportedly reduce Spotify's
workforce by almost a fifth in order to maintain
profitability as economic growth slows.
The same day that Spotify announced the layoff,
the company's share price rose by as much
as 8% and has continued to climb.
On December 1, prior to Spotify announcing
the layoff of about 1,500 staff members,
the company was trading at $180 per share.
Three days later, after the announcement, shares
surged to $194 and were up to $199 on December 5.
.
'The Guardian' points out that while it is legal to sell stock
amid a layoff, cashing in when many staff members face losing
their jobs before the holidays is ethically questionable.
.
I recognize this will impact a number
of individuals who have made valuable
contributions.
To be blunt, many smart,
talented and hard-working people
will be departing us, Daniel Ek, Spotify’s founder and chief executive, via 'The Guardian'.
I recognize this will impact a number
of individuals who have made valuable
contributions.
To be blunt, many smart,
talented and hard-working people
will be departing us, Daniel Ek, Spotify’s founder and chief executive, via 'The Guardian'.
In January, Spotify laid off 6% of its staff,
reducing its global workforce to 9,200.
.
Four months later, the company
cut 200 more jobs, mostly from
Spotify's podcast division.
.
Despite rising numbers of monthly active
users, Spotify has struggled to remain profitable,
reporting a $500 million net loss so far in 2023.
Spotify Makes Profit , As Premium Subscribers Increase.
Although the company gained fewer new users
than it anticipated in Q1 2024, Spotify boasted "record strength" in profitability, 'Variety' reports. .
"Moderating marketing activity" produced "more normalized growth," Spotify said.
Compared to the same time last year,
total active monthly users grew 19%.
"Organizational change" in the form of layoffs disrupted operations as well, CEO Daniel Ek said. .
However, year-over-year
Premium customer gains were at 14%.
Q1 2024 revenue rose 19.5%,
and gross profit exceeded $1 billion. .
We’ve talked about 2024 as the
year of monetization, and we’re
delivering on that ambition, Spotify CEO Daniel Ek, via statement.
Now as we’ve shifted to focus on
strong revenue growth and margin
expansion, we see a clear opportunity
to ensure we are also continuing to
grow the top of our funnel. , Spotify CEO Daniel Ek, via statement.
I feel good about the changes we
are implementing and remain very
confident in our ability to reach the
ambitious plans we’ve outlined, Spotify CEO Daniel Ek, via statement
Credit: Wibbitz Top Stories Duration: 01:30Published
Elon Musk , Loses Appeal of , 'Twitter Sitter' Provision .
On April 29, the Supreme Court denied billionaire
Elon Musk's challenge to the terms of a Securities
and Exchange Commission agreement. .
On April 29, the Supreme Court denied billionaire
Elon Musk's challenge to the terms of a Securities
and Exchange Commission agreement. .
NBC reports that the SEC requirement
would require a lawyer to review
the Tesla CEO's social media posts. .
In his appeal, Musk argued that the SEC's requirement,
which has been dubbed the 'Twitter sitter' provision,
unlawfully imposed conditions on his freedom to comment. .
In his appeal, Musk argued that the SEC's requirement,
which has been dubbed the 'Twitter sitter' provision,
unlawfully imposed conditions on his freedom to comment. .
The SEC requirement stems from Musk's tweets in 2018 that
claimed he was taking Tesla private, which shocked the
market and caused shares in the company to surge.
The SEC requirement stems from Musk's tweets in 2018 that
claimed he was taking Tesla private, which shocked the
market and caused shares in the company to surge.
The SEC deemed the tweets
"materially false and misleading,"
and in clear violation of securities laws.
At the time, Musk agreed to settle the issue
with the SEC, which included his signing off
on the so-called "Twitter sitter" provision.
NBC reports that Musk has since said
the restrictions are unconstitutional and that
he was coerced into signing the SEC agreement.
According to court papers, lawyers
representing Musk have accused the SEC
of waging an "ongoing campaign" against Musk.
Musk's legal team claim the provision , "restricts Mr. Musk’s speech even
when truthful and accurate.".
It extends to speech not
covered by the securities laws
and with no relation to the conduct
underlying the SEC’s civil action, Elon Musk legal team, via NBC.
In response, the SEC said in court papers
that Musk waived his right to appeal
when he signed off on the settlement.
Credit: Wibbitz Top Stories Duration: 01:31Published
Trump’s Social Media Company , Sues Co-Founders.
Trump Media & Technology Group filed a
lawsuit against co-founders Wesley Moss and Andrew Litinsky on March 24, ABC News reports.
The suit came two days before shareholders approved a merger that allowed the
company to begin trading on the Nasdaq.
The lawsuit alleges that the two men
"failed spectacularly" to lead the company and made "reckless and wasteful decisions"
that resulted in "significant damage.".
Trump Media wants the co-founders to give up
their shares of the company, among other things. .
TMTG has been forced to file this action
to remedy the harm inflicted upon it by two
faithless fiduciaries and a company they own --
Wesley Moss, Andrew Litinsky, and
[United Atlantic Ventures] -- and to halt their
ongoing attempts to do even more damage, Via lawsuit.
Moss and Litinsky's company,
United Atlantic Ventures, owns 5.5%
of Trump Media, according to the SEC.
That amounts to 7,525,000 shares
which are worth about $388 million.
Donald Trump's stake in the company
is currently valued at over $4 billion.
Since going public last week,
the stock has been very volatile. .
At one time, shares peaked over $79.
On April 1, they plunged by 21%.
Shares recovered slightly on April 2
Credit: Wibbitz Top Stories Duration: 01:30Published
SEC Permitted to Sue Coinbase , for Offering Unregistered Securities.
U.S. District Judge Katherine Polk Failla
has ruled that the Securities and Exchange Commission's (SEC) lawsuit against Coinbase
can proceed, The Verge reports. .
The SEC has sufficiently pleaded
that Coinbase operates as an exchange,
as a broker, and as a clearing agency
under the federal securities laws, , U.S. District Judge Katherine Polk Failla, via ruling.
... and, through its Staking Program,
engages in the unregistered
offer and sale of securities, U.S. District Judge Katherine Polk Failla, via ruling.
The judge rejected arguments that existing laws are inadequate when it comes to crypto. .
The judge rejected arguments that existing laws are inadequate when it comes to crypto. .
The ‘crypto’ nomenclature may be
of recent vintage, but the challenged
transactions fall comfortably within the
framework that courts have used to identify
securities for nearly eighty years, U.S. District Judge Katherine Polk Failla, via ruling.
Coinbase chief legal officer Paul Grewal
took to X to respond to the ruling. .
Coinbase chief legal officer Paul Grewal
took to X to respond to the ruling. .
Early motions like ours
against a government agency
are almost always denied. , Paul Grewal, Coinbase chief legal officer, via X.
But clarity is the ultimate
goal and today’s decision
continues us on that path, Paul Grewal, Coinbase chief legal officer, via X.
Looking ahead, we remain confident
in our legal arguments, we look
forward to proving we’re right, , Paul Grewal, Coinbase chief legal officer, via X.
... we are eager for the opportunity to
take discovery from the SEC for the first
time, and we appreciate the Court’s
continued consideration of our case. , Paul Grewal, Coinbase chief legal officer, via X
Credit: Wibbitz Top Stories Duration: 01:31Published
SEC's New , Climate Disclosure Rules , Facing Multiple Lawsuits.
'Newsweek' reports that both industry and
environmental groups have legally challenged the
Securities and Exchange Commission over new rules. .
The new rules require some businesses to disclose
information about climate risks, including direct
greenhouse gas emissions and risks from extreme weather.
The SEC rules, which were approved on March 6 by a 3-2 vote,
also require companies to provide investors with context
on how those companies plan on managing those risks.
Some requirements were pared back prior to the rules
being approved. Those rules include reporting on Scope 3
emissions which relate to the company's supply chain.
In response to the new rules, two fossil fuel producing
companies filed lawsuits accusing the SEC of burdening
companies and exposing them to potential litigation.
19 state attorney generals have also
filed lawsuits claiming that the new rules
exceed the SEC's legal authority.
On the other side, environmental groups the Sierra Club
Foundation and Earthjustice announced their own lawsuits
accusing the SEC of watering down rules to protect investors.
Sierra Club has millions of members
and supporters who have investments
in the market. It's really critical that
we have access to information about
climate risks that may be faced
by the kinds of entities that
we would hope to invest in, Andres Restrepo, Sierra Club Senior Attorney, via Newsweek.
'Newsweek' reports that the SEC rules were
meant to take effect in 2026, however, the
legal challenges are likely to result in delays.
The new rules come as the U.S. Supreme Court
has indicated plans to restrict the regulatory
authority of environmental enforcement agencies.
Credit: Wibbitz Top Stories Duration: 01:31Published
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