Spotify is launching a stock repurchase program in Q4 2018, in which it hopes to buy back up to $1 billion worth of its stock (10,000,000 of its ordinary shares).
According to a statement issued by Spotify today, the move was approved by the the company’s general meeting of shareholders and the Board of Directors.
The repurchase program expires on April 21, 2021 but the company has included a disclaimer in its statement saying that the “program may be suspended or discontinued at any time at the company’s discretion”.
It also adds that the repurchase programme “does not obligate the company to acquire any particular amount of ordinary shares”.
Spotify’s indication of its intention to buy back $1bn worth of stock comes less than a week after its Q3 2018 earnings announcement, in which it revealed that it had turned a net profit for the first time in its history
Spotify also confirmed that it had ended September with a global subscriber base of 87m people, up 4m on the 83m subscribers the service had three months earlier, at the end of June.
“The timing and actual number of shares repurchased will depend on a variety of factors, including price, general business and market conditions, and alternative investment opportunities,” said the company in the statement issued today (November 5).
“The repurchase program will be executed consistent with the Company’s capital allocation strategy of prioritizing investment to grow the business over the long term.
“Under the repurchase program, repurchases can be made from time to time using a variety of methods, including open market purchases, all in compliance with the rules of the United States Securities and Exchange Commission and other applicable legal requirements.”
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