Daniel Ek Steps Down as CEO of Spotify

In a significant leadership shift, Daniel Ek is set to leave his position as Chief Executive Officer of Spotify, effective January 1, 2026. Despite this transition, Ek assured that his commitment to the company will remain strong, as he will focus on long-term strategies aimed at shaping Spotify's future over the next decade.

Alex Norström and Gustav Söderström have been appointed as the new co-CEOs. Ek noted that in recent years, he has delegated much of the daily operations and strategic direction of Spotify to Norström and Söderström, who have been instrumental in the company's development since its inception. He emphasized that the title change reflects the reality of their current operational roles.

This announcement comes amid a backdrop of criticism directed at Ek for his involvement with the defense technology company Helsing, which has led to boycotts from several artists on the platform. Additionally, ongoing concerns regarding Spotify's compensation structure for musicians have contributed to the discontent.

Following the news of Ek's impending departure, Spotify's stock experienced a decline of approximately four percent in pre-market trading on the New York Stock Exchange. Christoffer Jennel, an analyst from Inderes, commented that the stock might have seen a more substantial drop had Ek chosen to exit the company entirely. He will continue to serve as Chairman of the Board and maintain an active role in Spotify's evolution.

Jennel highlighted that Spotify is now at a pivotal point in its journey, having established itself as a market leader with a proven business model. The decline in stock price indicates the market's perception of Ek's importance to Spotify's ongoing success. He remarked on Ek's transformative impact on the music industry, underscoring his significance to the company.

Since early 2024, Ek has sold Spotify shares worth nearly five billion kronor but remains a major stakeholder in the firm. While there are mixed feelings about his transition from the CEO role, there is a sense of reassurance in the leadership of Norström and Söderström, given their extensive experience and contributions to Spotify's growth.