(Bloomberg) -- Investment firm ValueAct Capital Management has built a position in Spotify Technology SA, in a move that supports the music-streaming company’s strategy led by Chief Executive Officer Daniel Ek to tighten its spending and become more efficient.

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ValueAct Chief Executive Officer Mason Morfit disclosed the position — which he described as the firm’s “newest investment” — during a presentation at a Columbia University event Friday in New York, touting the music-streaming giant’s innovative business model. Shares jumped as much as 4.7% to $126.55.

“Spotify’s superpower was combining engineering breakthroughs with organizational abilities — it organized creators and copyright owners to build an entirely new economic model that benefited everyone involved,” Morfit said in remarks at the Columbia Student Investment Management Association that were viewed by Bloomberg News. “During the boom, it applied these powers to new markets like podcasts, audiobooks and live chatrooms. Its operating expenses and funding for content exploded. It is now sorting out what was built to last and what was built for the bubble.”

ValueAct, which has pushed for changes at some of the world’s largest and most prominent companies, had a similar thesis last year with New York Times Co., urging the company to raise prices and improve margins to get more profit out of its subscription services.

Morfit didn’t elaborate on the size of the Spotify investment.

“We welcome ValueAct as an investor in Spotify,” said Adam Grossberg, a spokesman for Spotify. A representative for ValueAct declined to comment.

Spotify, which Morfit credited with inventing music streaming, made a massive commitment to podcasting beginning in 2019. It spent over a billion dollars acquiring podcast networks, a hosting service and the rights to popular shows like The Joe Rogan Experience and Armchair Expert.