NEW YORK (CelebrityAccess) — In a bid to bolster its flagging share price, music streamer Spotify on Monday announced plans to repurchase up to $1 billion worth of the company’s common stock.
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 and will include up to 10,000,000 shares of Spotify’s common stock.
Spotify’s buyback announcement comes amid sharp declines for the streaming service that saw the company’s share price fall from a high of 196 in late July to $138 dollars on Monday.
The company’s drooping stock price represents almost 10 billion in market value and is short of the $165.90 share price the company enjoyed when it filed its direct listing on April 3rd.
While Spotify’s share price has been battered in recent weeks, the company is still trading ahead of its pre initial listing reference price of $132 set by the New York Stock Exchange in April.
The buyback plan also follows fairly rosy Q3 results for the streaming service, which saw revenue for the quarter up by 31% with paid subscribers up by 40% to 87 million worldwide.
Spotify reported that it had about $1.25 billion in cash and equivalents on the balance sheet as of Sept. 30, up from $543 million at the end of 2017.