Spotify is to buyback shares worth up to $1bn (£770m) after months of share price falls for the music streaming company.

The Swedish company's share price fell more than 7pc over two days last week after a set of results that showed the company had continued to add users to its subscription service but was still making a loss.

The buyback comes after global tech selloff that has seen hundreds of billions of pounds wiped from the valuations of some of the world's biggest tech companies.

Spotify's shares have fallen from highs of almost $199 in July to $138 late last week when Spotify reported it had added 4 million new paying users for a total of 87 million.

The Swedish company will buy up to 10 million shares expiring in April 2021. The buyback would give investors the chance to buy into the global tech sell off. "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," Spotify said.

Spotify listed in New York in April in a deal valuing the company at around $30bn. While it has continued to grow its paying subscriber base, Spotify has continued to report losses to investors.