By Kimberly Chin

Shares of Spotify Technology SA rose nearly 6% on Wednesday to $292.10 after the company reached a new licensing agreement with Vivendi SA's Universal Music Group.

Spotify's deal with the world's largest record company will help it secure a massive catalog of streaming content and includes a "two-sided marketplace" term that involves music companies potentially paying for marketing, data and analytics, The Wall Street Journal reported.

The companies said they will work on developing marketing tools and campaigns that can be used on Spotify's platform. UMG will also provide feedback to Spotify's development team.

Spotify's shares have gained about 95% year to date.

Write to Kimberly Chin at kimberly.chin@wsj.com

(END) Dow Jones Newswires

July 22, 2020 13:32 ET (17:32 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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