Friday, November 22, 2013

Spotify Secures $250M for Global Expansion

Spotify has secured about $250 million in new financing that values the music-streaming company somewhere "north" of $4 billion, according to The Wall Street Journal.

The round of funding, led by Silicon Valley firm Technology Crossover Ventures, will help fuel Spotify's global expansion plans. While already established in many Western markets, including the U.S., Spotify is aiming to launch its service in more countries, including Japan.

Spotify's valuation is beginning to approach the market capitalization of Pandora, which went public in 2011 and is currently valued at $5.7 billion.

Spotify generated more revenue last year about $585 million—compared with Pandora's $427 million.

Losses at both companies, however, have widened as robust listener growth has brought with it higher royalty costs for playing songs.

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