Spotify (SPOT) shares dropped 4.18% after the announcement that founder Daniel Ek will step down as CEO and transition to the role of executive chairman on January 1, 2026.

Leadership will pass to Alex Norström, Chief Business Officer, and Gustav Söderström, Head of Product and Technology, who will take over as co-CEOs and are nominated to join the board of directors.

Ek described the move as a “natural evolution,” comparing the transition to “moving from player to coach,” and emphasized he will remain engaged in strategy, capital allocation, and the company’s long-term growth.

Key priorities outlined by the new leadership include global expansion in Asia and Africa, investments in AI-driven recommendation services, development of podcasts and audiobooks, and strengthening the superfan strategy to boost user engagement.

Wall Street analysts welcomed the transition, noting similarities to Netflix’s model and highlighting Spotify’s strong position, with shares up nearly 100% over the past year despite recent volatility.