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Spotify raises USD 250 mln for expansion - report

2013-11-22 09:05:00| Telecompaper Headlines

(Telecompaper) Spotify has secured about USD 250 million in new financing that values the music-streaming company at over USD 4 billion, multiple people familiar with the deal told the Wall Street Journal. The round of funding, led by Silicon Valley firm Technology Crossover Ventures, will help fuel Spotify's expansion to new markets such as Japan. Spotify makes most of its revenue from premium subscriptions; more than 6 million pay up to USD 10 a month. It also has more than 24 million active free users. With Technology Crossover Ventures, Spotify has added an investor familiar with the content licensing business. The investment firm purchased USD 200 million in convertible bonds from Netflix about two years ago. TCV has in the past also invested in real estate website Zillow, Facebook and internet domain registrar GoDaddy. Both Spotify and TCV declined to comment. Spotify last year raised more than USD 100 million from multiple investors at a valuation of slightly more than USD 3 billion. Its backers include Kleiner Perkins Caufield & Byers and Russian investment firm DST Global.

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Category:Telecommunications

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