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Business News Digital Management & Funding
Spotify financing round has $8.4bn valuation
By Chris Cooke | Published on Monday 13 April 2015
Spotify’s previously reported new funding round is valuing the streaming service at a neat $8.4 billion, according to sources cited by the Wall Street Journal.
Following reports that the Spotify company could be seeking to raise another half billion from investors in a move that is likely to put off the widely expected IPO by at least another year, the Journal says that the new monies being paid into the streaming firm’s coffers are likely to be closer to $400 million. But that’s still rather lot of money to fuel the further expansion of the service around the globe.
The $8.4 billion valuation puts Spotify among the most highly valued of private tech firms worldwide. The Journal’s sources also say that there is no firm timeline in place for the IPO as yet, which is when the service’s investors to date – and the record companies – are set to profit from that big bucks valuation.
In the meantime, analysts on Wall Street will continue to watch closely Universal’s latest licensing negotiations with the service – now that bosses there seem to be getting nervous about freemium – as well as the roll out of Tidal post the rather mixed reception to its relaunch and Apple’s planned iTunes/Beats rehash, all of which could affect the performance of Spotify if and when IPO Day arrives.
