Reports claim Spotify looking for new funding
Streaming music service Spotify is seeking a new investment of up to £30 million, according to The Times. Such an injection would value the company at up to £200 million – trebling its notional value since last Autumn.
Does this mean Spotify is running out of cash? There’s been much speculation recently about just how great the shortfall is between its advertising and premium subscription revenues on one side, and its licensing payments on the other.
The Times says there are now more than two million Spotify users in the UK alone, but quotes co-founder Daniel Ek as saying the new funding isn’t a sign of financial problems. In fact, he tells the paper that revenues are doubling every month. ““We are probably in better shape than most other companies in this market.”
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