Report: Spotify Financing Raising Value To $4 Billion
May 18, 2012 at 3:49 AM (PT)
SPOTIFY is raising a new round of financing that THE NEW YORK TIMES reports "would value the popular online music service at up to $4 billion, according to people with knowledge of the matter."
"SPOTIFY so far is on track to raise about $220 million," notes THE TIMES. GOLDMAN SACHS is to lead the round with about $100 million, or about half of the round, two of these people added. The people asked for anonymity because they said they would lose their jobs if their identities were known. The company, which is still in discussions with several major venture capital firms, may change the size of the financing round, depending on demand."
Last month (NET NEWS 4/26), SPOTIFY was said to be developing a U.S. Internet radio service that would directly challenge PANDORA. The current SPOTIFY business model allows users to create playlists from specific albums and tracks. The format being developed would be similar to PANDORA -- which is closer to radio, and pays lower royalty rates.