×

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

  • Google Stadia is a Net Neutrality

    Google Stadia is a Net Neutrality Nightmare

    At the Game Developers Conference (GDC) this year, Google announced that it has taken up the long and ever-lengthening dream of the video game streaming service. Meant to replace the hefty, pricey, altogether confounding experience of buying and using various gaming hardware, Google Stadia will run video games on Google’s own hardware in a server [...]

  • crunchyroll logo

    Crunchyroll Raises Subscription Price to $7.99

    AT&T-owned anime subscription video service Crunchyroll is raising its monthly subscription price from $6.95 to $7.99 a month, it announced in an email to members Friday. It’s the service’s first price increase ever, according to a spokesperson. The new pricing will go into effect on May 1 for new subscribers, while existing members will see [...]

  • StyleHaul

    StyleHaul Shuts Down U.S. Operations, Lays Off About 65 Employees

    The axe is falling on StyleHaul: The fashion, beauty and lifestyle digital media and marketing company owned by RTL Group is shuttering U.S. operations, resulting the layoff of around 65 employees. StyleHaul offices in L.A., with about 55 employees, and in New York City, with around 10 staffers, are closing. RTL said StyleHaul’s U.K. operations, [...]

  • Bandsintown Platform Acquires Hypebot, MusicThinkTank

    Bandsintown Platform Acquires Hypebot, MusicThinkTank

    Bandsintown, a leading platform for letting music fans know about upcoming concerts by their favorite artists, has acquired Hypebot, a news site publishing stories about the music industry and technology, and its sister site MusicThinkTank. “I’m proud to share that Hypebot and MusicThinkTank have been acquired by Bandsintown,” wrote Bruce Houghton, the founder of the [...]

  • Star-Wars-The-Clone-Wars

    Netflix Will Lose Disney's 'Star Wars: The Clone Wars,' James Bond Movies in April 2019

    More Disney content is about to roll off Netflix: The 2008 “Star Wars: The Clone Wars” animated movie as well as six seasons of the subsequent “Clone Wars” series are among the titles set to leave the streaming service next month. According to Netflix, the original Lucasfilm movie along with “Star Wars: The Clone Wars” [...]

  • Vertigo Games Believes ‘Location-Based Virtual Reality’

    Vertigo Games Believes ‘Location-Based Virtual Reality’ Is Future of VR

    As virtual reality becomes more and more available, many developers are looking for new frontiers to expand the experiences offered by the tech. For Netherlands-based Vertigo Games, that next frontier is what they call “location-based virtual reality.” It’s essentially high-quality VR experiences where players aren’t tethered to a PC or even to the confines of [...]

  • GDC 2019: Google's Play For Gaming

    GDC 2019: Google's Play for Gaming Ubiquity, Rise of Ray Tracing, Store Wars

    The Game Developers Conference finished up Friday evening, wrapping one of the most exciting GDCs in recent memory with Google’s splashy entrance into AAA video gaming, the emergence of real-time ray tracing as a compelling technology for film, TV, and games, and the growing war between two global estore powerhouses: Valve’s Steam and the Epic [...]

More From Our Brands

Access exclusive content