According to AllThingsD, noting “a person familiar with the transaction,” Spotify has closed its oft-rumored $3 billion round of funding.
Spotify, an early leader in streaming music, has been expanding internationally as it hopes to change the face of music away from a transactional, paid model around individual tracks and albums.
So. Much. Tech.
Some of the biggest names in tech are coming to TNW Conference in Amsterdam this May.
Earlier sources stated that as much as $100 million could be injected into the company. At the above listed valuation, that puts the sold stake at 3.33%. According to the Wall Street Journal, Goldman Sachs was a potential actor in the investment. That report, differing slightly from today’s news, listed the investment as “slightly more than $3 billion.”
While the $3 billion figure may impress, it’s down a fourth from the $4 billion figure that was bandied about 6 months ago. Still, picking up nine figures in cash for a sub-5% stake is hardly tough grapes for the company, which will now have ample cash to fuel its expansion.
Spotify has around 4 million subscribers that pay it monthly, at various price tiers. In the United States, for example, the service can cost $5, or $10 monthly, depending on what sort of access – mobile, for example – a user requires.
The music giant faces fresh competition from Microsoft, which has released a new service dubbed Xbox Music, which also features streaming capabilities. To combat that, Spotify has promised a Windows 8 application.
Top Image Credit: Sorosh Tavakoli