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Digital
Spotify seeking new finance to fuel further expansion
By Chris Cooke | Published on Monday 9 September 2013
Spotify is seeking new funding, according to Swedish news outlet Dagens Industri, to fuel further global expansion. According to the report, the streaming music firm is looking for debt financing rather than new investment because the company’s founders, Daniel Ek and Martin Lorenzon, and possibly existing investors, don’t want to further dilute their shareholdings.
Dagens Industri says that the company will be valued at $5.27 billion for the purposes of the debt financing, which is a whole billion more than the entirety of EMI was sold for last year, and about two-thirds what most people were valuing the entirety of live giant AEG, with its substantial real-estate holdings, when it was up for sale earlier this year. Which is pretty good going for a loss-making company with an as yet unproven business model.
Spotify, needless to say, is yet to comment on the financing rumours.
