Billboard News Today
Spotify announced on Monday that it will launch a stock buyback program this quarter, with its board of directors setting a limit of $1 billion or 10 million shares. The repurchase program will expire on April 21, 2021.
The company said that as long as repurchases are made during the allotted time frame and are in compliance with SEC rules, among other legal guidelines, transactions can be made using a “variety of methods,” including the open market. Timing and number of shares will depend on price, market conditions and other factors, the company said.
Additionally, Spotify said it is not obligated to acquire any particular amount of ordinary shares, and the program can be suspended or killed at any time.
Last week, Spotify reported total revenue of €1.352 billion ($1.54 billion) during the third quarter, an increase of 31 percent year-over-year and 6 percent compared to last quarter. The company also announced a modest 5 percent increase in paid subscribers during the period, to 87 million. Combined with ad-supported users, the company’s total monthly active users rose to 191 million in Q3, up 6 percent from the previous quarter.
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