• 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
Prophet_of_the-horizons,

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.
Today's headlines
Science
Swedish women in two-year sex pill study
Contraceptive pills have been linked to mood swings. Photo: Shutterstock

Swedish women in two-year sex pill study

Three hundred women from across Sweden are taking part in a study designed to demonstrate that modern contraceptive pills don't lead to decreased libido or mood swings. READ  

National
Dog attack policewoman acquitted on appeal
A scene from a video of the attack published by Dagens Nyheter

Dog attack policewoman acquitted on appeal

A policewoman accused of letting her dog attack a drunk man while she repeatedly hit him with a baton, has had her conviction overturned by a court in Stockholm. READ  

Entertainment
What's On: October 31st - November 7th
Uma Thurman will soon be on her way to Stockholm. Photo: TT

What's On: October 31st - November 7th

Halloween fun and an international film festival are the big events hitting Stockholm this week. We cast our eye over the capital and the rest of the country for the best activities to check out this week. READ  

International
Pirate Bay Swede found guilty in Denmark
Gottrid Svartholm Warg. File photo: TT

Pirate Bay Swede found guilty in Denmark

Sweden's Pirate Bay Founder Gottrid Svartholm Warg was found guilty of hacking crimes in a Danish court on Thursday. READ  

National
Malmö loses out as rare toads move in
The European green toad. Photo: H. Krisp (WikiCommons)

Malmö loses out as rare toads move in

After a rare species of toad moved into southern Sweden's Malmö, builders have had to tone down massive expansion plans in the area. READ  

Politics
Palestine recognized as state by Sweden
Palestinians in Gaza last month. Photo: Adel Hana

Palestine recognized as state by Sweden

The Swedish government has officially decided to recognize Palestine, with the move announced in a speech by the country's new Foreign Minister Margot Wallström. READ  

Interview
Stockholm's shocking take on Halloween
For ten days, Globen is transformed into a giant pumpkin. Photo: Shockholm

Stockholm's shocking take on Halloween

American Bill Schacht missed the spooky outfits, family feasts and charity events he associated with Halloween when he moved to Sweden. So he did something about it. The Local meets the founder of the capital's annual Shockholm parade. READ  

Business & Money
Huge losses for energy giant Vattenfall
A Vattenfall plant in Germany. Photo: TT

Huge losses for energy giant Vattenfall

Swedish energy company Vattenfall has reported losses for the third quarter in a row. READ  

International
Malala donates prize winnings to Gaza
Malala receives the Children's Prize from Queen Silvia. Photo: TT

Malala donates prize winnings to Gaza

UPDATED: Girls' rights champion Malala Yousafzai, who was in Sweden to accept the World's Children's Prize on Wednesday, said she would use all her winnings to help rebuild schools in war-ravaged Gaza. READ  

Swedish Honeymoon Killing
Cape Town 'fixer' phoned Dewani before killing
Dewani in a Cape Town court. Photo: TT

Cape Town 'fixer' phoned Dewani before killing

A man jailed for killing British businessman Shrien Dewani's wife during their Cape Town honeymoon said on Wednesday they spoke shortly before the murder to discuss payment. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Business & Money
Get your own office in Gothenburg or Stockholm - free for a day
Gallery
People-watching: October 30th
National
Sweden remains fourth best for gender equality
National
Timeline: Julian Assange sex allegations
Sport
World Cup ski race on 'fake' Stockholm slope
Blog updates

29 October

Scariest day (Blogweiser) »

"This is what’s frightening me on Halloween. http://www.youtube.com/watch?v=D4OFZVCu8J0&list=UUJu5J7jG4uoYSjWbpFsJBuQ Follow my posts on FB. ..." READ »

 

24 October

Editor’s blog, October 24th (The Local Sweden) »

"Hi readers, Get ready to read our weekly digest of Swedish news in less than 60 seconds. The..." READ »

 
 
 
Society
An Arctic tradition: hunting and handicraft
Society
Stockholm taxis offer free therapy sessions
National
The Local meets Health Minister Gabriel Wikström
Gallery
Property of the week: Österåker
Society
Homeless turtles get Stockholm police ride
National
Construction worker has 'Sweden's best beard'
National
Italian musician jazzes up Sweden's Lapland
Gallery
Zlatan's career in pictures
Finest.se
Gallery
People-watching: October 25th and 26th
Lifestyle
'Swedes are funnier than they think'
National
Swedish town 'like Venice' after heavy rains
Lifestyle
What's On in Sweden: October 24th - 31st
Gallery
People-watching: October 22nd
Gallery
In Pictures: Prince Carl Philip and Sofia Hellqvist
Lifestyle
Eight things to love about renting a Swedish apartment
National
Vasa ship cannon blasted in Sweden
National
Sub hunt: Day-by-day
National
Sub hunt: Stockholm islanders share their fears with The Local
Sponsored Article
The best options for oversea transfers
National
Dentist gives free care to Roma beggars
Gallery
Property of the week: Malmö
Gallery
PHOTOS: 'Foreign activity' in Swedish waters
TT
Society
QUIZ: How good is your Swedish?
Society
The nudity... and nine other things expat men notice in Sweden
Gallery
People-watching: October 15th
Gallery
Your views: Should outdoor smoking be banned in Sweden?
Business & Money
Sweden has 'large hole' in finances
Sponsored Article
Introducing... Finding a job in Stockholm
Society
Monster salmon caught in northern Sweden
Gallery
Property of the week: Lorensberg
National
Scandinavia's child bride
National
Ebola crisis: How is Sweden preparing?
Business & Money
How Sweden is becoming a cashless society
Gallery
Stockholm Burlesque Festival 2014
National
How a little red horse became a symbol for Sweden
Gallery
People-watching: October 12th
Business & Money
The hottest start-ups from southern Sweden
National
Stockholm is 'best' region for well-being
Gallery
People-watching: October 8th
National
Five facts to know about Patrick Modiano
Sponsored Article
How to catch the first lobster of the year
Team SCA
Sponsored Article
All-female SCA team takes off on Volvo Ocean Race
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

994
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN