Spotify Announces Stock Repurchase Program, Up to $1.0 Billion
November 05 2018 - 7:42AM
Business Wire
Spotify Technology S.A. (NYSE:SPOT) (the “Company”) announces
that it will commence a stock repurchase program beginning in the
fourth quarter of 2018. Repurchases of up to 10,000,000 of the
Company’s ordinary shares have been authorized by the Company’s
general meeting of shareholders and the Board of Directors approved
such repurchase up to the amount of $1.0 billion. The repurchase
program will expire on 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 repurchase program will
be executed consistent with the Company's capital allocation
strategy of prioritizing investment to grow the business over the
long term.
Under the repurchase program, repurchases can be made from time
to time using a variety of methods, including open market
purchases, all in compliance with the rules of the United States
Securities and Exchange Commission and other applicable legal
requirements.
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.
Forward Looking Statements
We would like to caution you certain of the above statements
represent “forward-looking statements” as defined in Section 27A of
the United States Securities Act of 1933, as amended, and Section
21E of the United States Securities Exchange Act of 1934, as
amended. The words “may,” “might,” “will,” “could,” “would,”
“should,” “expect,” “plan,” “anticipate,” “intend,” “seek,”
“believe,” “estimate,” “predict,” “potential,” “continue,”
“contemplate,” “possible,” and similar words are intended to
identify estimates and forward-looking statements. We intend such
forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and include this statement
for purposes of complying with the safe harbor provisions. Such
forward-looking statements involve significant risks, uncertainties
and assumptions that could cause actual results to differ
materially from our historical experience and our present
expectations or projections, including but not limited to the
following known material factors: our ability to attract
prospective customers and to retain existing customers; our
dependence upon third-party licenses for sound recordings and
musical compositions; our ability to comply with the many complex
license agreements to which we are a party; our ability to generate
sufficient revenue to be profitable or to generate positive cash
flow on a sustained basis; our lack of control over the providers
of our content and their effect on our access to music and other
content; our ability to accurately estimate the amounts payable
under our license agreements; the limitations on our operating
flexibility due to the minimum guarantees required under certain of
our license agreements; our ability to obtain accurate and
comprehensive information about music compositions in order to
obtain necessary licenses or perform obligations under our existing
license agreements; potential breaches of our security systems;
risk associated with unauthorized access of our software and
services and manipulation of stream counts and customer accounts;
assertions by third parties of infringement or other violations by
us of their intellectual property rights; risks related to our
status as a foreign private issuer; dilution resulting from
additional share issuances; the concentration of voting power among
our founders who have and will continue to have substantial control
over our business; tax-related risks; unanticipated changes
relating to competitive factors in our industry; ability to hire
and retain key personnel; changes in legislation or governmental
regulations affecting us; international, national or local
economic, social or political conditions; conditions in the credit
markets; risks associated with accounting estimates, currency
fluctuations and foreign exchange controls; and such other risks as
set forth in our filings with the United States Securities and
Exchange Commission.
We caution you not to place undue reliance on these
forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly update or revise any of our
forward-looking statements after the date they are made, whether as
a result of new information, future events or otherwise, except to
the extent required by law.
About Spotify Technology S.A.
Spotify is the largest global music streaming subscription
service with 191 million Monthly Active Users and 87 million
Premium Subscribers. With a presence in 65 countries and
territories, and more than 40 million tracks, it has transformed
the way people access and enjoy music.
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Investor Relations:Paul Vogelir@spotify.comorPublic
Relations:Dustee Jenkinspress@spotify.com
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