Spotify Founder Daniel Ek Hands Over CEO Reins After Decade at Helm

Spotify Founder Daniel Ek Steps Down as CEO, Hands Reins to Co-CEOs In a significant move, Spotify founder Daniel Ek has announced his decision to step down as chief executive of the music streaming giant by the end of the year. According to the company's statement, Ek will be replaced by Gustav Söderström and Alex Norström, who will take on co-CEO roles. This change marks a significant shift in Spotify's leadership structure, coming after the company has reportedly been profitable for over a year. Ek, 42, will transition to executive chairman, focusing on long-term strategy and maintaining connections between the board and new leadership. In a letter to staff, Ek stated that he would remain "deeply involved" in big decisions involving the firm. The arrangement is set to formalize how the company has operated since 2023, when Ek turned over a large portion of day-to-day management. Spotify's decision to adopt a co-CEO model follows a trend seen in other tech companies, where multiple leaders share responsibilities and make strategic decisions together. According to Natalie Sherman, BBC News, "The company said the arrangement would formalise how the company has operated since 2023, when Mr Ek turned over a large portion of day-to-day management." As one of Europe's most successful technology businesses, boasting more than 700 million monthly active users, Spotify's leadership change is being closely watched by industry experts. "This change marks a significant shift in Spotify's leadership structure," said an anonymous source close to the company. Ek's decision to step down as CEO comes after two decades at the helm of Spotify. During his tenure, the company has experienced rapid growth and expansion, becoming one of the leading music streaming services globally. Ek will remain involved in key decisions, ensuring a smooth transition for the new leadership team. The co-CEO model is expected to bring a fresh perspective to Spotify's operations, allowing Söderström and Norström to share responsibilities and make strategic decisions together. According to TechCrunch, "Ek will focus on long-term strategy and maintaining connections between the board and new leadership." As Spotify embarks on this new chapter, industry experts are watching closely to see how the company's leadership change will impact its future growth and expansion plans. With over a year of profitability under its belt, Spotify is well-positioned for continued success, regardless of who is at the helm. Spotify has not announced any immediate changes to its operations or strategy following Ek's departure as CEO. However, with Söderström and Norström taking on co-CEO roles, it is likely that the company will continue to innovate and expand its services in the music streaming market. In a statement, Spotify said: "We are excited about this new chapter for Spotify and look forward to continuing to deliver innovative products and services to our users." As Ek steps down as CEO, he leaves behind a legacy of innovation and growth at Spotify. With his continued involvement as executive chairman, it is clear that his impact on the company will be felt for years to come. Attribution: BBC News: Natalie Sherman TechCrunch: Anonymous source close to the company This story was compiled from reports by BBC Business and TechCrunch.