The investment from Technology Crossover Ventures values the upstart streaming-music service at more than $4 billion, according to a report. November 21, 2013 1:57 PM PST Spotify house at SXSW 2013. (Credit: James Martin/CNET) Spotify nailed down an investment of $250 million -- close to half its revenue all last year -- that values the streaming music service at more than $4 billion, according to a report by the Wall Street Journal. Related stories The 404 1,380: Where all your late fees are waived (podcast) Spotify steps up clip sharing with messaging app Tango Spotify to carriers: We don't need to be enemies GTA Online hit with launch problems Talks between Spotify and Technology Crossover Ventures over a potential $200 million investment were reported earlier this month by Sky News. Spotify is growing rapidly and spreading quickly across the world from its homebase in Sweden -- and burning through cash to do it. Spotify's revenue last year surged to about 435 million euros, or about $588 million at current rates, from just 190 euros the year before, but its losses widened. In March, Spotify said it had surpassed 6 million subscribers, a gain of 1 million since December, making it the fastest-growing digital music company ever and second in reach to Pandora. But both Pandora and Spotify are plagued by the high cost of music licensing. In Spotify's case, the company pays an estimated 70 percent of its sales to rights holders through direct deals with music labels. Another $250 million in the coffers will keep fueling Spotify's expansion mission and shows CEO Daniel Ek is able to convince investors of his goal to make Spotify the DJ to every moment of your life, even if the majority of Internet music listeners in the US still aren't.
The investment from Technology Crossover Ventures values the upstart streaming-music service at more than $4 billion, according to a report.
Spotify house at SXSW 2013.
(Credit: James Martin/CNET)
Spotify nailed down an investment of $250 million -- close to half its revenue all last year -- that values the streaming music service at more than $4 billion, according to a report by the Wall Street Journal.
Related stories
- The 404 1,380: Where all your late fees are waived (podcast)
- Spotify steps up clip sharing with messaging app Tango
- Spotify to carriers: We don't need to be enemies
- GTA Online hit with launch problems
Talks between Spotify and Technology Crossover Ventures over a potential $200 million investment were reported earlier this month by Sky News.
Spotify is growing rapidly and spreading quickly across the world from its homebase in Sweden -- and burning through cash to do it. Spotify's revenue last year surged to about 435 million euros, or about $588 million at current rates, from just 190 euros the year before, but its losses widened.
In March, Spotify said it had surpassed 6 million subscribers, a gain of 1 million since December, making it the fastest-growing digital music company ever and second in reach to Pandora. But both Pandora and Spotify are plagued by the high cost of music licensing. In Spotify's case, the company pays an estimated 70 percent of its sales to rights holders through direct deals with music labels.
Another $250 million in the coffers will keep fueling Spotify's expansion mission and shows CEO Daniel Ek is able to convince investors of his goal to make Spotify the DJ to every moment of your life, even if the majority of Internet music listeners in the US still aren't.
