[UPDATED] Spotify Technology S.A. (NYSE:SPOT) announced that it will begin a $1 billion stock repurchase. Repurchases of up to 10,000,000 in Spotify 'ordinary shares' have been authorized by shareholders and the Board of Directors up to a total cost of $1 billion. After the announcement, Spotify stock rose 2.6% in premarket trading Monday morning.
Spotify stock has been on a downward spiral in recent weeks, losing as much as 30% form summertime highs.
The stock repurchase program begins now and will end by April 21, 2021.
"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," the company said in a statement. "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."
"The repurchase program does not obligate the Company to acquire any particular amount of ordinary shares, and the repurchase program may be suspended or discontinued at any time at the Company’s discretion."