updated 05:48 pm EST, Sun November 11, 2012
Music streaming service to seek fresh funding
Music streaming service Spotify is looking to raise $100 million in a financing round that would see the company valued at around $3 billion. Spotify hopes to raise the new funds from a number of investors, with Goldman Sachs among them. The report, if true, would represent a 25 percent drop in the valuation target for the company, as it was earlier rumored to be seeking $200 million at a $4 billion valuation.
Reuters reports that Spotify has already raised about $189 million in funding from Kleiner Perkins Caufield & Byers, Accel Partners, and others in previous financing rounds.
Since its launch, Spotify has grown to a prominent position in the music industry, and it now stands as the number two source of revenue for the major record labels, behind Apple's iTunes. The service has struck deals with Internet companies like Yahoo, as well as music marketing deals with AT&T, Reebok, and Intel.
Amid these deals, Spotify has been looking to expand, with the company eying opening up services in Canada, Asia, and South America. It is also said to be looking to bring out a browser-based version of its service, allowing users to access it without downloading an app.
Spotify currently has over 15 million active users, of which more than four million are paying subscribers to its service.