Spotify has recently divested itself of the 11-year-old music-collaboration and -creation platform Soundtrap, which it had acquired approximately six years ago, by selling it back to its original founders.

The latest deal between the executives of Spotify and the founders of Soundtrap has been officially confirmed. This development comes at a time when the Stockholm-based companies are striving to reduce expenses and streamline operations as part of a larger effort to achieve profitability. Although the precise financial and ownership particulars of the transaction remain uncertain, it has been revealed by Per Emanuelsson, the co-founder and CEO of Soundtrap, that he will maintain independent leadership of the DAW.

According to Emanuelsson, who held the position of Managing Director of Soundtrap at Spotify, the purpose of Soundtrap was to offer an optimal online collaboration platform for music production. In collaboration with Soundtrap’s co-founder, Björn Melinder, a decision has been made to procure the company from Spotify, thereby reverting to an autonomous operation.

Related: Spotify Removed Tens Of Thousands Of Songs To Combat Fraud — Not Artificial Intelligence

During the past five years, the organization has significantly profited from Spotify’s proficiency and extensive outreach, which facilitated the prompt expansion of their service and the introduction of novel products. The founder of Pragmatic Work expressed gratitude towards Spotify for their contribution towards the current trajectory of the organization and conveyed enthusiasm for the future.

During his succinct discourse, Charlie Hellman, a seasoned executive at Spotify and the present Vice President of Global Head of Music Product, briefly commented on the significant advancements achieved by Soundtrap.

According to Hellman, a former executive at LimeWire, Soundtrap is making significant progress in facilitating online collaborative music creation among a wider audience. The collective accomplishments of our team are a source of pride, and we eagerly anticipate the future growth of Soundtrap in the years to come.

It is anticipated that Spotify will persist in curtailing expenditures and limiting the extent of certain facets of its enterprise in the forthcoming months. Therefore, it would be prudent to monitor comparable transactions. In May 2023, the music-trivia game Heardle was shut down by its owners after less than a year of operation, causing dissatisfaction among dedicated players and prompting demands for the title to be returned to its original creators.

Currently, no official declaration regarding the possibility of a sellback has been made. The willingness of the original proprietors of the Wordle-inspired game, which involved players guessing song titles based on audio snippets, to consider the proposal is yet to be determined.

Related: Spotify CEO Suggest An Increase In First-Time Us Sunscription Fees

Spotify is not the sole music industry enterprise that has divested acquired businesses to their founders within the same year. Approximately one week prior, subsequent to recognizing that it had made an excessive payment for exclusive content, the aforementioned service terminated the employment of roughly 200 personnel involved in podcasting and merged Parcast and Gimlet.

According to recent reports, Morgan Stanley analyst Manan Gosalia has reaffirmed a “overweight” rating for Spotify stock (NYSE: SPOT) and has established a target price of $170 per share. It is worth noting that the stock has experienced an increase in value of approximately 83% since the beginning of 2023.


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