facebook
twitter
rss
account
search
search
 

Spotify raises valuation to $4 billion

Swedish streaming music service Spotify raises $250 million and is now valued at $4 billion, and it's catching up to U.S. competitor Pandora.
Posted By Sonali Basak   |   Nov. 22, 2013 at 5:02 PM   |   Comments

| License Photo
Nov. 22 (UPI) -- Swedish music streaming service Spotify raised a $250 million investment, valuing the company at $4 billion. This is up from a $3 billion valuation last year, and will help the company's global expansion.

Silicon Valley firm Technology Crossover Ventures, which also invested in Netflix, Facebook and Groupon, led the investment.

Spotify is now in 32 markets, up from 17 a year ago. It competes with U.S. companies Pandora and Apple's iTunes for music streaming. It also raised more revenue than Pandora last year, with close to $585 million raised compared with Pandora's $427 million.

Spotify raised $100 million in a previous year of fundraising from Goldman Sachs and Coca-Cola, among others.

Pandora went public last year and is now valued at $5.7 billion. But both Pandora and Spotify face a shortfall in profits. A huge cost for Pandora has been music royalty costs, while the bulk of Spotify's expenditures are on expanding to new markets.


[Wall Street Journal]
[NY Times]

© 2013 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Featured UPI Collection
trending
Notable deaths of 2014 [PHOTOS]

Notable deaths of 2014 [PHOTOS]

Most Popular
1
Why the fake braces trend may be dangerous for users
2
Jared Leto 'stopped eating' for his 'Dallas Buyer's Club' role
3
Gisele Bundchen, Tom Brady drop $14M on Manhattan home
4
Kelly LeBrock arrested for DUI
5
Brandi Brandt faces drug charges in Australia
Trending News
Video
x
Feedback