three reasons Spotify could move from Sweden to NY

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Source:   —  April 13, 2016, at 4:29 PM

Spotify has a problem with Sweden. So much so, it'south contemplating emotional to New York.

three reasons Spotify could move from Sweden to NY

Spotify has a problem with Sweden. So much so, it'south contemplating emotional to New York.

The company'south founders declare they could ditch their residence country unless the government makes it a more friendly space for startups.

In an open letter in Swedish posted on website Medium, Spotify co-founders Daniel Ek and Martin Lorentzon said Sweden was headed in the incorrect direction.

"We like Sweden and believe that this is basically the best environment for us. But at the same time, we cannot magically delete the political obstacles," they wrote. "Thousands of Spotify jobs could go to the U. S. instead of Sweden."

Spotify declined to elaborate on the blog post.

Ek and Lorentzon said they'd consider halting investment at their headquarters in Stockholm. The pioneering music streaming company employs about eight hundred fifty people in the city, and more than one.000 in nearly thirty other offices around the world.

Here are their three main concerns about doing business in Sweden:

1. Housing: It'south very challenging to rent an apt in the city, because a large proportion are controlled by housing associations. The Spotify co-founders declare this makes it challenging to invite foreign talent who may not be prepared to buy. People have been known to wait over a decade to obtain a rental apartment.

Ek and Lorentzon argue that it'south much simpler to rent places in cities love New York, London and Singapore, even though they're also expensive locations.

Stockholm'south mayor Karin Wanngard told CNNMoney that executive are trying to create it easier to discover housing by building thousands more homes.

Related: Manhattan rents finally went down

two. Education: The Spotify co-founders also declare that the country doesn't focus sufficient on technology at schools, leading to a shortage of programmers -- in specific female programmers.

"The necessity for programmers and developers is enormous and, therefore, we should simply train more people," they wrote.

Stockholm'south mayor said the city has launched programming curriculum in some schools for kids aged ten and up.

"That's actually a project that started partly as a result of a meeting I'd with Spotify," said Wanngard.

Spotify'south office in Stockholm, Sweden.

three. Stock options: Swedish rules are preventing Spotify from granting generous stock options to employees, which the co-founders declare hurts their skill to invite the world'south best and brightest.

Proposals to overhaul stock option rules don't go distant enough, they say, and taxes on options are much higher than in countries such as Germany and the U. S.

Related: Spotify gives new moms and dads six months off

Sweden prides itself on being a hotbed for tech startups and entrepreneurship.

Soundcloud, Klarna and Confection Crush maker King all got their start in Sweden, alongside retail giants Ikea and H&M.

And not all Swedish startups consent that it'south time to start packing their bags.

Mans Ulvestam, the founder & CEO of Stockholm-based podcast startup Acast, disagrees with much of Spotify'south letter.

Ulvestam said he believes Sweden does a excellent work educating people for programming. And while it's tough to discover housing in Stockholm, he says emotional to NY isn't the answer.

"I think it'south cheaper to have the majority of tech development in Stockholm," he told CNNMoney.

Still, the government should get another see at stock options.

"You wish the best people to have a share in the company... and be able to create money. But [the tax rules] create it very hard," Ulvestam said.

--CNNMoney'south Label Thompson and CNN'south Jim Stenman contributed to this report.

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