Spotify founder Daniel Ek is stepping down as CEO to become executive chairman, a move that caused the company’s shares to drop in premarket trading on Tuesday.
The Stockholm-based streaming giant announced that Ek will be succeeded by two longtime lieutenants as co-CEOs: Chief Product and Technology Officer Gustav Söderström and Chief Business Officer Alex Norström. Both currently serve as co-presidents and will officially take on their new roles on Jan. 1, reporting directly to Ek.
Spotify said in a statement that the change “formalizes” how the company has operated since 2023, with Söderström and Norström already leading strategic planning and day-to-day operations. Ek added that he had previously “handed over much of the daily management and strategic direction” to them. “This change simply matches titles to how we already operate,” he said.
Since its founding nearly 20 years ago, Ek has helped Spotify transform the music industry and shape modern streaming. The platform now boasts over 700 million subscribers and offers more than 100 million songs, 7 million podcasts, and 350,000 audiobooks.
Spotify shares, which had doubled over the past year, fell more than 3% in premarket trading following the announcement.