BREAKING: Spotify shares plunged more than 4% as trading opened on Tuesday, following the shocking announcement that billionaire founder Daniel Ek will step down as CEO after nearly two decades at the helm. This significant leadership change comes as Spotify’s stock trades around $697, marking a steep decline that echoes a similar downturn in premarket activity.
In a statement released earlier today, Spotify confirmed that Ek will transition to the role of executive chairman, while co-presidents Gustav Söderström and Alex Norström will take over as co-CEOs effective January 1, 2026. Ek will remain actively involved in the company’s strategic direction, focusing on long-term planning and capital allocation. He stated, “I’m not leaving,” assuring employees he will continue to guide top decisions.
This leadership shake-up raises questions about Spotify’s future direction. Ek, whose fortune is estimated at $10.3 billion, holds approximately 9% of Spotify’s shares. His wealth has nearly doubled over the past year, with Spotify’s market capitalization swelling by $73.9 billion to about $149.6 billion as of Monday. The stock price has surged nearly 98%, reflecting a growing user base that now exceeds 696 million, including 276 million subscribers across more than 180 markets.
Ek co-founded Spotify in 2006 alongside Martin Lorentzon, launching the platform to challenge Apple’s iTunes with a subscription model for unlimited music access. Spotify has since expanded its offerings to include audiobooks and podcasts, with Ek hinting at even more innovations in the pipeline.
Despite this transition, Spotify concluded 2024 with its first full year of profitability after implementing price increases in the U.S. and achieving a record 12% growth in monthly active users during the fourth quarter.
As the news unfolds, industry analysts and investors alike will be closely monitoring how this leadership change impacts Spotify’s trajectory in the highly competitive audio-streaming market.
Stay tuned for more updates as we track the latest developments in this unfolding story.
