Report: Spotify Close To $400 Million In New Financing
September 13, 2012 at 3:56 AM (PT)
The NEW YORK POST reports webcaster SPOTIFY "is close to completing a new financing round for nearly $400 million. The latest funding round is said to value the company at an eye-popping $4 billion -- almost double its estimated $2.2 billion value last year."
The news comes on the heels of a report last week (NET NEWS 9/4) that while audiences seem to be flocking to Net radio services such as PANDORA and SPOTIFY, industry observers -- including PANDORA's own hierarchy -- have claimed that the cost of doing business is pricing them out of their own market. MASHABLE.COM posted a couple of charts, compiled by STATISTA.COM, that clearly illustrate that as 2012 has gone on, the rise in PANDORA's and SPOTIFY's revenue growth has not kept up with the rise in content acquisition costs.
That news didn't dampen SPOTIFY's plans for growth. Several sources told THE POST that GOLDMAN SACHS "is taking the lead in drumming up interest in SPOTIFY, which is in expansion mode. The company is planning to use the cash to build scale and serve its growing subscriber base."