Shares of Spotify Technology SA were put on the spot this morning as the Swedish audio-streaming company announced that CEO Daniel Ek will be transitioning out of the role at the end of the year.
He will be replaced by two new co-CEOs: Gustav Söderström, Spotify’s current co-president and chief product and technology officer, and Alex Norström, co-president and chief business officer.
Ek will remain with the company and oversee its long-term strategy and capital allocation, and provide guidance in his new role as chairman of the board.
Kicking and streaming
Investors may take some time to absorb the news. Spotify stock, listed in the U.S. and trading on the New York Stock Exchange, was down nearly 4% as of 8:30 a.m. during premarket trading.
However, shares are up almost 6% over the past month and a whopping 60% year-to-date as Spotify has reported consistent user growth and its first full profitable year in 2024.
“I always believed that Spotify could play an important role in revolutionizing listening around the world, and with more than 700 million users, we’ve truly charted a new course bringing creativity to every corner of the globe,” Ek said in a company statement.
The CEO also announced his departure on Instagram.
The 42-year-old Ek cofounded Spotify in 2008 and has been with the company ever since, seeing it grow from a small Swedish startup to become the top music streaming platform in the world, with almost 700 million users worldwide along with 276 million subscribers in 180 markets.
More recently, the company has leaned into the burgeoning audiobook segment, rolled out new features like “Mix” mode, and more.
‘Can’t wait to get started’
With a lot of momentum, Spotify’s new CEOs said in a joint statement that they’re confident they’ll take the company forward.
“We’ve worked together a very long time and have seen Spotify through many different chapters,” Söderström and Norström said. “Nearly three years ago, when we stepped into our role as co-Presidents, we charged our teams with relentlessly focusing on building the best and most valuable experience available anywhere and that ambition hasn’t changed.”