Spotify Nears Funding Round That Would Value It at $4 Billion (Report)

4:35 AM PDT 9/13/2012 by Georg Szalai

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The privately held company last year had an estimated value of $2.2 billion.

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Fast-growing digital music service Spotify is closing in on a $400 million funding round that would value the Swedish company at $4 billion, up from an estimated $2.2 billion value last year, the New York Post reported.

Goldman Sachs is leading the financing deal designed to help Spotify with its expansion plans, it said, citing sources.

“Spotify wants to grow geography, building out in other countries, and they need money for rights negotiations,” one source told the paper.

Privately-held Spotify reported a loss of $57 million on revenue of $236 million last year.

Spotify, led by CEO Daniel Ek, had 15 million-plus global users, including 4 million paying subscribers, as of last count. That compares to Pandora's 54.9 million active users and Apple's more than 400 million iTunes accounts.

A Spotify spokesman declined to comment.

According to recent data, music sales in Sweden jumped 30 percent in the first six months of the year, driven mainly by Spotify.

Email: Georg.Szalai@thr.com
Twitter: @georgszalai