• Sweden edition
Spotify CEO gives stock market the cold shoulder

Spotify CEO gives stock market the cold shoulder

Published: 13 Apr 2012 15:42 GMT+02:00
Updated: 13 Apr 2012 15:42 GMT+02:00

“We want to build this company for the long term. So the stock market is not an option for us,” he said to the Dagens Industri (DI) newspaper on Friday.

However, the public has been calling for such a change, and Spotify rates highly in terms of Swedish companies that people want to see on the market.

Net broking company Nordnet published a survey last week in which they asked Swedes which Swedish company they would most like to see on the stock exchange.

The results showed that Spotify came in second place, with Ikea taking the top spot; however these findings allegedly do little to sway Ek’s resolve.

“It’s certainly flattering that many people want to see us there, but I don’t have much time for quarterly report capitalism when it comes to the stock exchange,” he said.

According to the paper, Spotify lost 655 million kronor over the last two years, during which time the company brought in a 160 percent increase of earnings, to a value of 1.7 billion kronor.

Ek confirms that these figures sound “reasonable” and predicted that it “would not be unlikely” for Spotify to turn over more than six billion kronor in 2012.

The Local/og (news@thelocal.se)

Your comments about this article

19:33 April 13, 2012 by Mbenzi
It is not easy to get access and comment... something is wrong with the log in setup.

Anyway, I love to read what Daniel Ek says about long terms versus "quarterly report capitalism". It is like being carried back to the basics, to the very reason for why there is a stock market at all, pointing at the fact that the stock market does not function to its intentions.

The stock market was intended to attract funds for interesting companies and ideas, but has become a gigantic casino where the ideas are forgotten. Only quarterly and annual reports are important. Stock prices may fall like rocks even for companies with growing profits, should the growth be below expectations. It is like a pyramid game based on profit expectations and financial tricks, without being anchored in real values.

IKEA was mentioned. Not so strange, because many are impressed by IKEA, a real moneymaker. They want to have a share of the profits. But IKEA is not interested in the stock market. They don't need your money, because they already have money for investments. Kamprad once said that he can accept losses in a new market like Russia for 20 years, because they plan on long term profits. That way of thinking does not fit into the strategies of companies on the stock exchange.

There are so many good ideas, and so many under-valued companies on the stock market. Some of them need investments. Check out their ideas and what they are doing.

If you believe in them, put your money there!
19:37 April 13, 2012 by prophet_of_the_horizons
Good for him. Hopefully Sweden does not have laws like the US where a private company could be forced to go public if the number of outsiders with shares goes above a certain numbers.
19:40 April 13, 2012 by Satch
Mbenzi, that comment was spot on.

Just because people want to buy something doesn't mean it must be put up for sale.
20:14 April 13, 2012 by Mbenzi

Sweden certainly has laws. Some of those laws are intended to make money for the government, other laws have other goals.

But many laws make it impossible to remain in control of your own ideas and investments, while other just shatter what you try to build up.

Much of the reason for IKEA's success is its size, and that it (to the public) has its activities under one major brand name.

But because of the above reasons, IKEA is no longer Swedish. They have lawyers and legal advisors who know the book, and IKEA is today a complicated structure of companies and foundations. But it has enabled Mr. Kamprad to remain in control of the whole lot.

Sweden has "lost" short-term tax incomes because of IKEA's maneuvers.

But instead, Sweden has earned billions on that IKEA carries the Swedish colors and is seen as Swedish. It has created thousands of jobs, in many countries. The size of IKEA's aid to projects in developing countries overshadow the aid from many governments.

Now, if IKEA had NOT made those "maneuvers" and staid in Sweden, taxing as most other companies, they had probably been gone already or possibly remained as a shy furniture warehouse somewhere.

It would have been almost as bad if IKEA had gone public on the stock exchange - some rich bankers would have demanded their quarterly yield and sunken all long-term plans.
21:32 April 13, 2012 by philster61
Perhaps Spotify might want to actually the musicians from whom the profit, their just due royalties... They should change their nme to "profit by".... I will never open an account with Spotify until they actually pay the musicians from whom they richly profit
08:09 April 14, 2012 by Douglas Garner
@philster61... perhaps you are confusing the concept of Spotify and other legitimate internet music services with PirateBay? Also, if you read the article, you may notice that they are not making real money, yet.
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