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Shares of Spotify Technology SA were put on the spot this morning as the Swedish audio-streaming company announced that CEO Daniel Ek will be transitioning out of the role at the end of the year. He will be replaced by two new co-CEOs: Gustav Söderström, Spotifys current copresident and chief product and technology officer, and Alex Norström, copresident and chief business officer. Ek will remain with the company and oversee its long-term strategy and capital allocation, and provide guidance in his new role as chairman of the board. Kicking and streaming Investors may take some time to absorb the news. Spotify stock, listed in the U.S. and trading on the New York Stock Exchange, was down nearly 4% as of 8:30 a.m. during premarket trading. However, shares are up almost 6% over the past month and a whopping 60% year-to-date as Spotify has reported consistent user growth and its first full profitable year in 2024. I always believed that Spotify could play an important role in revolutionizing listening around the world, and with more than 700 million users, weve truly charted a new course bringing creativity to every corner of the globe, Ek said in a company statement. The CEO also announced his departure on Instagram. The 42-year-old Ek cofounded Spotify in 2008 and has been with the company ever since, seeing it grow from a small Swedish startup to become the top music streaming platform in the world, with almost 700 million users worldwide along with 276 million subscribers in 180 markets. More recently, the company has leaned into the burgeoning audiobook segment, rolled out new features like Mix mode, and more. ‘Can’t wait to get started’ With a lot of momentum, Spotifys new CEOs said in a joint statement that theyre confident theyll take the company forward. Weve worked together a very long time and have seen Spotify through many different chapters,” Söderström and Norström said. “Nearly three years ago, when we stepped into our role as co-Presidents, we charged our teams with relentlessly focusing on building the best and most valuable experience available anywhere and that ambition hasnt changed.”
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E-Commerce
Shares of Beyond Meat slumped to a record low on Monday after the maker of plant-based meat launched an exchange offer for convertible bonds to cut more than $800 million in debt. The stock was last down 32.1% at $1.93, after falling as low as $1.23. The company last month posted a revenue drop and a wider-than-expected loss, citing weak U.S. consumer demand. It said it was still facing “an elevated level of uncertainty” and will not provide any full-year estimates. Consumer spending has been affected by economic uncertainty and consumer tastes have been shifting in the plant-based meat market. The company will exchange its $1.15 billion 0% convertible notes due 2027, with up to $202.5 million of new convertible payment-in-kind 7% notes due 2030, along with 326 million shares of its common stock, according to a filing on Monday. Payment-in-kind means Beyond Meat will be able to pay interest with additional debt instead of cash, with the payment-in-kind notes paying interest at a 9.50% annual rate. The exchange offer is meant to sharply reduce leverage and extend maturity to support Beyond Meat’s long-term vision of being a global plant protein company, President and CEO Ethan Brown said in a statement on Monday. The filing showed about 47% of holders of the 2027 notes have already agreed to the exchange offer, while other creditors have until October 28 to accept the offer. Following Beyond Meat’s results, TD Cowen analysts said in an August note that the management and board have recognized the “existential threat facing the business and are taking steps to preserve cash and stabilize sales.” However, they recommended selling the stock, noting that the company’s fragile financial situation and weak demand for meat alternatives create too much risk. Of the nine analysts who cover Beyond Meat, three have a “hold” rating on the stock and six have a “sell” or “strong sell” rating, according to LSEG. Beyond Meat’s stock is down about 50% for the year to date. Additional reporting by Lance Tupper Caroline Valetkevitch, Reuters
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E-Commerce
When the clock strikes midnight tonight, the U.S. government could shut down. If that happens, it will be because Congressional Republicans and Democrats could not reach an agreement on a new funding bill, which is required to keep the government running. As noted by CBS News, one of the key sticking points between Democrats and Republicans involves healthcare provisions in the proposed bill. Democrats want provisions in the bill that would help fund healthcare for millions of Americans across the country. They also want restrictions on President Trumps ability to withhold such healthcare funding. Republicans have so far refused to entertain these provisions. If a deal cant be reached, the federal government will shut down on Wednesday, October 1. The shutdown will impact Americans in different ways, depending on their livelihoods and the services they rely on. Heres how a government shutdown could affect three large groups of Americans, including Social Security recipients, travelers, and federal workers. What if I’m a Social Security recipient? The good news is that if you currently receive Social Security payments, the government shutdown will not stop those payments from being sent to you, reports CBS News. This is no doubt a relief for the 74 million Americans who get Social Security checks every month. The reason Social Security checks will continue to come is that Social Security spending is mandatory and therefore does not need to be renewed on a yearly basis. However, some administrative tasks of the Social Security Administration (SSA) could be impacted due to federal workers being furloughed during the shutdown. This could include benefit verifications, earnings record corrections and updates, overpayments processing, and replacing Medicare cards, Max Richtman, CEO of the National Committee to Preserve Social Security & Medicare, told CBS News. Will a government shutdown delay my flight? If the government does shut down, not all federal employees who work in travel-related positions will be furloughed. This is because some of these workers are considered essential, so federal law says they must continue workingalbeit without pay in many cases. Essential federal workers include those who work for the Transportation Security Administration (TSA) and Customs and Border Protection (CPB). It also includes those who work for the Federal Aviation Administration (FAA), including air traffic controllers, as noted by USA Today. However, while these workers will continue to perform their roles, it’s possible that if the shutdown continues for a long time, some of them could attempt to strike over a lack of pay. If a strike occurs, it could cause delays at airports. And then there are the non-essential federal employees who work in travel-related positions, such as those in the National Park Service. Many of these workers will be furloughed, which could lead to the closure of national parks or their understaffing. How will a government shutdown affect federal workers? Without a doubt, the most immediate impact of a federal shutdown will be felt by Americans who work for the federal government. If a shutdown occurs, most federal employees who are considered non-essential workers will be furloughed. During the time they are off work, they will not be paid, which could have devastating financial consequences for them and their families. A law passed in 2019 states that federal workers who are furloughed during a shutdown have a right to back pay once funding is restored, but that law does nothing to help those workers while the shutdown is in place. What’s more, things could be worse for federal workers this time around when compared to previous government shutdowns. That’s because the Trump administration has stated that if the government is shut down, federal agencies should prepare to permanently lay off federal workers whose jobs dont align with President Trumps priorities, CNN reports. If the Trump administration goes through with those plans, it could mean that when some federal workers leave their jobs on Wednesday, if there is a shutdown, they may never return to those roles again. Will a federal government shutdown happen? Congress has less than 24 hours to avert a federal government shutdown. And as of the time of this writing, there are no signs that the Republicans and Democrats are close to an agreement to pass the funding needed to avert a shutdown. If the government shuts down, it will not be unprecedented. As CBS News notes, government shutdowns have occurred 14 times since 1980. The most recent shutdown was in Trumps first term in 2018-2019, when the federal government shut down for 34 daysthe longest shutdown on record. Whether the average American who isnt a federal worker feels the immediate impact of any shutdown depends on their situation, but most should experience a limited impact if the shutdown doesnt last long. As noted above, this is because Social Security checks will continue to arrive, planes will remain in the air, and mail will continue to be delivered (since the United States Postal Service is a self-funded institution). To see how a shutdown may affect other aspects of life, its worth checking out the various 2025 Federal Government Shutdown FAQs that are being posted by some members of Congress on their websites.
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E-Commerce
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