What Could a New Board Member Mean for Spotify?
The stock for audio-streaming giant Spotify (NYSE: SPOT) jumped 5% on Feb. 16 following the announcement of its newest board member, Mona Sutphen. Why does the market care so much about one board member joining the Spotify team?
Let's take a closer look and see if we can find an answer.
Spotify has a history of appointing board members who hint at the future direction of the company. Perhaps the most obvious example was when it appointed Ted Sarandos to the board in 2016. Sarandos, who now holds the role of co-CEO at Netflix (NASDAQ: NFLX) as well as its chief content officer, helped kick-start Netflix's transition into original content in 2013. With that in mind, it's probably no coincidence that Spotify ventured into original and exclusive podcasts shortly after Sarandos' appointment to the board.