Aiming to fuel its falling stock price, Spotify announced that it would buy back up to US$1.0 billion in stock – up to 10 million in ordinary shares. The repurchase program was authorized by the general meeting of the company’s shareholders and approved by the board of directors. The company will start the stock repurchase program from the third quarter of 2021.
In a regulatory filing, the company said on Friday: “The repurchase of up to 10,000,000 of the Company’s common shares has been authorized by the Company’s general meeting of shareholders, and the Board of Directors has approved such repurchases of up to USD1.0 billion.” The repurchase authorization will expire on April 21, 2026.”
“The buyback program will be executed in line with the company’s capital allocation strategy, which will continue to prioritize aggressive investments to grow the business,” the company said.
The decision to buy back the stock comes at a time when Spotify is reporting modest growth for its streaming business, but has been struggling in the public markets as investors have become skeptical that the company will see that growth in the long run. will be able to maintain or not. profitable.