Daniel Ek, founder and chief govt officer of Spotify, attends the Cannes Lions 2016 on June 22, 2016 in Cannes, France.
Antoine Antoniol | Getty Images
Spotify CEO Daniel Ek will step down from his place and transfer to the function of govt chairman, the corporate stated Tuesday.
Spotify shares dipped 6% following the announcement.
Ek, who co-founded the streaming platform in 2006, shall be changed by present co-presidents and longtime executives Gustav Söderström and Alex Norström as co-CEOs, the corporate stated in a launch. The transition will occur Jan. 1, 2026.
“Over the last few years, I’ve turned over a large part of the day-to-day management and strategic direction of Spotify to Alex and Gustav–who have shaped the company from our earliest days and are now more than ready to guide our next phase,” Ek stated in a launch. “This change simply matches titles to how we already operate.”
Ek stated his new function will deal with steering the corporate’s long-term technique and offering help to its senior staff.
“It’s been an honor of a lifetime for me to be able to lead Spotify for close to 20 years,” Ek stated in an X post.
Ek, who now has a internet price of $9.8 billion in accordance with Forbes, has led the streaming large to its present market cap of $140 billion.
Launched in 2008, Spotify now affords over 100 million tracks and boasts 696 million customers and 276 million subscribers, up 11% and 12% respectively from a 12 months in the past.
The firm stated in its second-quarter earnings report that it expects to internet add 14 million energetic customers and 5 million internet new Premium subscribers for the present quarter, even with the added worth hike announced in August.
Spotify year-to-date inventory chart.
In September, costs elevated to 11.99 euros (US $14.08) from 10.99 euros (US $12.90) for premium subscribers in markets together with South Asia, the Middle East, Africa, Europe, Latin America and the Asia-Pacific area, the corporate stated in a launch.
The firm reported complete income of 4.19 billion euros within the second quarter, which was up 10% 12 months over 12 months however missed LSEG estimate of 4.26 billion euros.
Questions had been raised about its promoting enterprise, with income down about 1% within the section from a 12 months in the past.
Spotify has additionally been cracking down on synthetic intelligence “slop” beneath the rising menace of AI-generated music going viral.
The streaming juggernaut minimize 75 million AI spam tracks up to now 12 months and rolled out up to date insurance policies to guard in opposition to dangerous AI use, the corporate stated in a release last week.
Spotify shares are up 54% year-to-date.