Spotify Is Raising Another $500 – $600 Million, Could Delay IPO
Spotify is reportedly in talks to raise an additional $500 to $600 million in funding which could delay a rumored iPO until 2016. The new investments would put the total funds raised by music streamer at more than 1$ billion.
A $7 Billion Valuation
Spotify is in talks with Goldman Sachs to raise the funds, sources tell the Wall Street Journal. Potential investors including T. Rowe Price are reportedly being told that Spotify's current valuation is more than $7 billion. Spotify has offered investors with “ratchet” provision that promises a guaranteed return if there is an IPO.
$1 Billion To Major Labels
Among those who stand to gain from Spotify's growing wealth and soaring valuation are the 3 major label groups – Sony, Universal and Warner Music Group – who own a collective 15% of Spotify. At $7 billion, that stake would be worth more than $1 billion.
