Spotify founder Daniel Ek Steps Down, Leaving Behind a $145 Billion Music Empire
Stockholm, Sweden – September 30, 2025 – Daniel ek, the founder of Spotify, announced today he is stepping down as CEO, transitioning to the role of Executive Chairman.The move comes as the streaming giant, now valued at $145 billion, reaches sustained profitability after years of growth and industry disruption. Ek, who once famously described himself as the “least powerful person” at his own company, has overseen Spotify’s evolution from a fledgling startup to a dominant force in the global music landscape.
Ek’s departure marks the end of an era for the company he launched in 2006, but signals confidence in the leadership of Alex Norström and Gustav Söderström, who have been instrumental in shaping Spotify’s strategy and will now guide its next phase. the transition underscores a intentional handover of day-to-day management, a process Ek initiated “over the last few years,” according to his statement.
Spotify’s journey under Ek has been marked by both innovation and controversy. The company revolutionized music consumption with its streaming model, offering access to over 100 million tracks and seven million podcast titles to more than 700 million global users. Alongside pioneering employee benefits like a work-from-anywhere policy and six months of parental leave for all genders, Spotify navigated complex relationships with artists and record labels.
The company faced public criticism in 2014 when Taylor Swift famously pulled her music from the service over royalty concerns, though she later returned. More recently, Spotify drew complaints from smaller artists following a 2024 policy change that removed royalty payments for those with fewer than 1,000 streams. Despite these challenges, Spotify reported a record $10 billion in royalty payouts to the music industry last year.
Ek’s vision extended beyond simply providing access to music. He aimed to fundamentally change how the industry valued music, and in 2024, Spotify achieved a meaningful milestone: profitability. “I think the company will remain strong in the future under new leadership,” Ek stated, expressing optimism about Spotify’s continued success. His legacy will be defined by transforming how the world listens to music and building a streaming empire from the ground up.
