Music streaming giant Spotify announced on Tuesday that its founder, Daniel Ek, will step down as CEO. He will transition into the role of executive chairman by the end of the year.
The company has named two internal executives as his replacements. Gustav Söderström and Alex Norström will become co-CEOs. Söderström currently serves as co-president and chief product and technology officer, while Norström is co-president and chief business officer.
In a statement, Daniel Ek explained the reasoning behind the change. He noted that over the last few years, he had already handed over a large part of the day-to-day management and strategic direction to Alex and Gustav. He stated that they have been with the company from its earliest days and are now ready to guide its next phase. Ek said this move simply formalizes titles to reflect how the company already operates. In his new role as executive chairman, he will focus on the long-term vision for the company and ensure the board and the new co-CEOs remain closely connected.
In a separate online post, Ek also mentioned that Spotify has been profitable for over a year.
Daniel Ek has served as Spotify’s CEO since he founded the company in 2006, making this a significant leadership change for the streaming giant.
Outside of Spotify, Ek co-founded a body scanning health startup called Neko in 2018. Earlier this year, that company raised 260 million dollars in Series B funding, achieving a post-money valuation of 1.8 billion dollars. He also runs an investment company called Prima Materia, which he founded in 2021 alongside Spotify investor Shakil Khan.