New Investors Line Up To Give Spotify Another $400 Million
A list of top global investors is emerging as Spotify continues late stage talks to reap an additional $400 million in funding at a valuation of $8.4 billion. It's no coincidence that Spotify wants to complete this round prior to the June launch of Apple's streaming music service.
Global investment groups are lining up to buy a stake in Spotify. The investments will range from tens of millions of dollars, up to $100 million worth of stock, according to insiders.
According to Sky News, new investors in late stage talks with Spotify include:
- London based hedge fund Lansdowne Partners
- Abu Dhabi Investment Council
- Baillie Gifford
- DE Shaw
- Discovery Capital Management
- Halcyon Asset Management
- Northzone
- PSAM
- Rinkelberg Capital
- Senvest Capital
Existing investors participating in the new funding round include Goldman Sachs' GSV and Technology Crossover Ventures. Prior to this round, Spotify has received $537.8 Million in 7 rounds from 17 investors.
Let’s just get down to it. Spotify isn’t going to shut their doors. So songwriters and musicians need to put on our big boy pants and take back control.
Interactive music streaming is a zero sum game with an exit strategy based on finding the greater fool to buy into an IPO. The biggest loser is you the artist, as long as you choose to give them your music.
Interactive music streaming should not exist. It can’t pay market value for product and it can’t make money either.
It is up to the musicians to decide if they want to do business with Spotify, etc. The best thing is that Interactive music streaming services are not entitled to compulsory licenses, hence the windowing we see with new releases and other artists who simply choose to not have their music available there.
Signed artists can tell their labels that they do not want their music available there. As the courts are finding, many artist contracts do not have digital distribution clauses and the artists are beginning to challenge the major labels in the courts and wining. Artists do have power and the labels are vulnerable to legal action on numerous levels, including conflict of interest.