June 11, 2015
Spotify isn’t going down without a fight. In fact, the music streaming service intends to put Apple Music in its place.
The Wall Street Journal is reporting Spotify closed a new funding round for $526 million on an $8.53 billion valuation.
Although Spotify did not verify the numbers reported by the Journal, Swedish telecommunications firm TeliaSonera said it had invested $115 million in Spotify in return for a 1.4 percent stake in the company.
“We’ve set-out to create a New Generation Telco where innovation is key to our success. Spotify is a great company, loved by customers and with a world class take on innovation I’m excited to join Spotify’s journey as investor and key partner,” TeliaSonera CEO Johan Dennelind said in a press release.
That is good news for Spotify, which must now go up against Apple’s new music service — a daunting task considering the iPhone maker’s deep pockets.
But the good news for Spotify does not end with it latest funding round.
The company announced it now has 20 million paying subscribers, up 10 million since last year and up five million since January. It now has more than 75 million active users — up 15 million since the beginning of the year.
“That’s an average of one new subscriber every three seconds over the last year,” Spotify said in a blog post. “Wow. And, more people listening on Spotify means more payouts to the creators of the music you love. As we grow, the amount of royalties we pay out to artists, songwriters and rights holders continues to climb faster than ever.”