Spotify founder steps down amid controversy over defence links

Core Points - Daniel Ek, co-founder of Spotify, will step down as CEO at the beginning of next year, transitioning to the role of executive chairman after two decades in leadership [1][2] - Gustav Söderström and Alex Norström will take over as co-CEOs, reporting directly to Ek, formalizing the operational structure that has been in place since 2023 [2][4] - Ek's decision follows backlash over his €700 million investment in defense company Helsing, which has faced criticism from artists and groups [2][3] Investment and Backlash - Ek's investment in Helsing, which specializes in AI software for military use and has expanded into weapons manufacturing, has drawn significant scrutiny [2] - Artists like Massive Attack have announced they will withdraw their music from Spotify in protest of Ek's defense sector investments [3] - Despite the criticism, Ek has expressed confidence in the investment's alignment with European interests [3] Company Operations - Spotify has stated that it operates independently from Helsing, emphasizing that the latter's technology is used solely for Ukraine's defense against Russia [4] - The leadership change is expected to reduce scrutiny on Spotify regarding Ek's controversial investments, although shares fell nearly 4% in pre-market trading following the announcement [4] - Ek indicated that the change in leadership titles reflects the existing operational dynamics of the company, allowing him to focus on long-term strategic goals as executive chairman [5]