Daniel Ek, the founder of Spotify, is stepping back from day-to-day running of the streaming giant to focus on longterm strategy and pursue his ambition to create more “super-companies”.
Ek, 42, will move to the role of executive chairman in January, with Spotify executives Gustav Soderstrom and Alex Norstrom jointly taking over the chief executive position.
In a memo to employees, Ek said: “Why now? Because Alex and Gustav have clearly demonstrated that, with the support of this remarkable team, they are ready to lead Spotify as co- CEOs. And because you all have stepped up, I can confidently step back from the day-to-day.” He said he intended to “help create more of these super-companies, ones that are developing new technologies to tackle some of the biggest challenges of our time”.
Spotify Technology’s shares, which have gained 63 per cent this year, closed down $30.69, or 4.2 per cent, at $697.78 in New York last night.
Ek was still in his early twenties when he founded Spotify in Sweden in 2006. He has built it into a streaming giant with a market valuation of $144 billion.
As executive chairman, Ek will focus on capital allocation and long-term strategy in what the company called a European-style chairman role. He has a net worth of $9.8 billion, according to the Bloomberg Billionaires Index.
Spotify, which has nearly 700 million monthly users, receives a monthly subscription fee for ad-free listening from half its customers. It reported its first annual profit in 2024 after a series of price increases and cost-cutting efforts.
Global revenue from recorded music rose 4.8 per cent to $29.6 billion in 2024. Streaming exceeded $20 billion for the first time and subscription streaming accounted for more than half of it, according to IFPI’s Global Music Report.
Soderstrom, currently chief product and technology officer, oversees global tech strategy and product development, while Norstrom, as chief business officer, manages subscriber and advertising businesses along with music, podcast and audiobook operations.
They will report to Ek, who also serves on the board.
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