Music-streaming company Spotify raises $526 million for advancing into new forms of media
Music-streaming company Spotify Ltd plans for $526 Million investment in expansion and Streaming Services.
Spotify's invests in expansion and new forms of content as it faces a growing set of challengers that now includes Apple Music, a subscription-based streaming-music service and a 24-hour global Internet radio station.
Spotify said that it now has more than 20 million paying subscribers out of 75 million active monthly users. Nordic Telecom operator TeliaSonera AB also participated in the fundraising, investing $115 million, and said in a statement that the two companies would work together on areas such as media distribution, customer insights, data analytics and advertising.
Part of the new funding may be used to fuel Spotify’s push into new forms of media. At an event last month in New York, the company announced a plan to add videos and podcasts from partners including ESPN, NBC, Conde Nast, and Comedy Central. Spotify was valued at more than $5 billion last September, according to filings by GSV Capital, a private investment fund that owns the shares.
The nine-year-old company has now raised a total of more than $1 billion. Spotify is at least the 10th venture-backed company in Europe, China and the U.S. to raise at least $500 million in equity funding this year, according to Dow Jones VentureSource.
|Type||Expansion, Content Creation, Streaming Services|
|Proposed Investment||$526 Million|