×
You will be redirected back to your article in seconds

Spotify to Buy Back Up to $1 Billion in Stock

Aiming to boost its flagging stock price, Spotify announced a plan Monday to repurchase up to $1 billion worth of shares.

On news of the stock-buyback program, Spotify shares rose 2.3% in pre-market trading. [UPDATE: The stock closed up 3.3% on Monday, to $143.60 per share, while the tech-heavy Nasdaq declined 0.38% with declines by Apple, Amazon, Facebook and Alphabet.]

The move comes after the music streamer reported third-quarter 2018 results on Nov. 1, with paid subscribers increasing 40% to 87 million worldwide. Revenue for the period rose 31%, to $1.54 billion, while its operating loss nearly doubled to $6.8 million. The earnings news and weaker outlook sent the stock down more than 10% last Thursday.

Since Spotify’s share price peaked in July — after its unusual direct-listing IPO in April — the company has lost nearly $10 billion of market value. The decline comes amid a broader pullback in tech stocks, and investors also have cooled to Spotify’s long-term growth story.

Spotify said the repurchase of up to 10 million ordinary shares was authorized at the company’s general meeting of shareholders, and its board approved the buyback up to the amount of $1 billion. The stock-repurchase program will commence in Q4 and expire on April 21, 2021. “The repurchase program will be executed consistent with the company’s capital allocation strategy of prioritizing investment to grow the business over the long term,” Spotify said in a statement.

In the boilerplate of the announcement, Stockholm-based Spotify noted that the stock-buyback program “may be suspended or discontinued at any time at the company’s discretion.”

Spotify had about $1.25 billion in cash and equivalents on the balance sheet as of Sept. 30, up from $543 million at the end of 2017.

More Digital

  • apple music

    Verizon Bundles Apple Music With Top-Tier Unlimited Wireless Plans for No Extra Charge

    Verizon has expanded its ties to Apple — offering wireless subscribers on its two most expensive unlimited plans access to the Apple Music for no extra charge. Starting Jan. 17, Apple Music will be included in Verizon’s Beyond Unlimited and Above Unlimited plans, the telco announced Tuesday. For Apple, the bundling agreement promises to augment [...]

  • Infowars Alex Jones

    Roku Removes Infowars Channel Following Backlash

    Roku has taken the Infowars channel off its platform after the streaming device faced criticism for carrying the controversial program hosted by right-wing conspiracy theorist Alex Jones. “After the InfoWars channel became available, we heard from concerned parties and have determined that the channel should be removed from our platform,” stated the company’s tweet on [...]

  • SAMUEL L. JACKSON in Glass. M.

    ‘Glass’ Again Tops Studios’ TV Ad Spending

    In this week’s edition of the Variety Movie Commercial Tracker, powered by the TV advertising attention analytics company iSpot.tv, Universal Pictures claims the top spot in spending for the second week in a row with “Glass.” Ads placed for the superhero thriller had an estimated media value of $9.89 million through Sunday for 1,183 national [...]

  • Snap Inc

    Snap CFO Tim Stone to Leave Company

    Snapchat corporate parent Snap Inc. is facing another major executive departure: The company’s chief financial officer Tim Stone is on his way out, Snap revealed in a regulatory filing Tuesday afternoon. Stone will stay with the company to find a new candidate for his position for the time being, according to the filing. His last [...]

  • birdbox Sandra Bullock

    Will Netflix's Latest Price Hike Spur a Customer Backlash?

    Netflix is rolling out its biggest price increase to date — including hiking the standard HD plan from $10.99 to $12.99 per month — for all subscribers in the U.S. and parts of Latin America. The obvious risk: Some customers will see the higher prices as a reason to bail on Netflix, while there’s also [...]

  • Alex Jones Infowars

    Roku Faces Criticism Over Infowars Channel

    Streaming device maker Roku faced a backlash Tuesday over its decision to carry a channel for Infowars, the controversial website of right-wing conspiracy theorist Alex Jones. The company responded by saying that Infowars wasn’t currently violating its terms of use. The uproar over Roky carrying Infowars comes a few months after most other major platforms, [...]

  • BTS 'Burn the Stage: The Movie'

    BTS 'Burn the Stage: The Movie' Documentary Set to Hit YouTube Premium Service

    “Burn the Stage: The Movie,” a documentary following K-pop group BTS on their 2017 concert tour, will be streaming on the YouTube Premium subscription service starting this Friday. The movie is based on the previous YouTube original series “BTS: Burn the Stage.” Since its release in theaters worldwide last November, “Burn the Stage: The Movie” has [...]

More From Our Brands

Access exclusive content