According to a report in the New York Times, Spotify’s investors in its fresh $100 million round of funding include Goldman Sachs, Fidelity Investments, and Coca-Cola.
Goldman, the storied investment bank, put in $50 million — these numbers could be slightly off, fair warning — Fidelity $15 million, and Coca-Cola $10 million. The final $25 million came from prior investors, likely putting in more funds to ensure that their stake remains sizable.
The Goldman funds put the bank in a prime spot to be the leading investment house to help take Spotify down the road.
Why might Coca-Cola invest in Spotify, a music company that feels as far from soft drinks as possible? Key: $10 million is a rounding error to its advertising budget, so the funds will hardly be missed. And, critically, the two companies have worked together in the past:
Spotify has just announced more details surrounding its worldwide partnership with Coca Cola. Coke had been quietly working with developers to build its Spotify app at a private hackathon, the “hacker den” on April 14-15. The resulting winning app will be released to the public “in mid-June/July.” This will coincide with Coke’s 2012 Olympics campaign in London. With this partnership, Spotify will also be at the core of Coca Cola Music starting later this year, through 2013.
The 💜 of EU tech
The latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!
Now, presuming that Coca-Cola wants to continue its work with Spotify, a company with deep reach into the ears and rooms of technologically savvy youths – a tricky demographic to reach – and wishes to freeze out its arch-rival Pepsi from similar access, how might it do so? Buy a piece of the action.
Microsoft has shown the power of a minute minority stake in a company through its purchase of Facebook stock. It’s meager percentage, bought for $240 million, has been heralded as key to the two companies’ closeness. For that sum, Microsoft picked up 1.6% in the social giant.
For fun, at a $3 billion valuation, here are the stakes as held by the three new Spotify investors:
- Goldman Sachs: 1.66%
- Fidelity Investments: 0.5%
- Coca-Cola: 0.33%
That’s what $75 million will buy you these days.
Top Image Credit: Eric
Get the TNW newsletter
Get the most important tech news in your inbox each week.