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And yet it's tech bro founder is a multibillionaire

• lotsofpulp 2y ago
  Why is that relevant? The organization he has lots of equity in due to his negotiations as a founder has 600M customers and 9k employees. The public markets still believe it might be worth a few billion dollars for an organization that has 600M customers with recurring revenue. The “tech bro” founder could have had billions of more dollars if he had dumped all his Spotify shares years ago. It does not mean the organization is making a ton of money, or has any pricing power. An alternative is Visa or Verisign of Intuit or Microsoft or Qualcomm or Apple, those businesses have fat profit margins. Those businesses get to set their prices at the highest profit margins. Spotify barely limps along hoping one day it can eke out more than a low single digit profit margin consistently.
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