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Spotify (loss last year $57m) pulls in $100m from investors including Coke

Digital music service Spotify is pulling in big names in a new $100 million financing round. After the new cash injection , the streaming music service will be valued at about $3 billion, says the New York Times.

Spotify: Coke invests

One big name becoming a minority investor is said to be Coca Cola, reportedly putting in $10 million. Of the $100 million, half is from Goldman Sachs. Another new investor, Fidelity Investments, is said to be chipping in about 15 percent . The rest is said to be coming from Spotify’s existing investors.

Spotify, founded in Sweden in 2006, came to the United States last year and is now in 17 countries; this week it opened in Ireland and Luxembourg.

The NYT said an investment of $10 million or so would be small for a company like Coca-Cola, with a market cap of $162 billion. "But it is a step toward technology investment for Coke, and it represents a potentially huge new pool of investment sources for digital music."

In April, Coke made an announcement about a marketing partnership with Spotify, with few details other than a promise to help the service reach new markets around the world.

Spotify, has 15 million users around the world, 4 million of them paying subscribers. It is not yet profitable, losing last year about $57 million on $236 million in revenue.

Streaming music services around the world are however attracting big investments. Last month, Deezer, a French rival of Spotify , raised $130 million, largely from Access Industries, the holding company controlled by Len Blavatnik that owns the Warner Music Group.

NY

Noel Young

Former editor of Sunday Mail in Glasgow and Group Managing editor of Daily Record and Sunday Mail. Now Boston-based US correspondent for UK newspapers including Daily Mail, Mail on Sunday and Sunday Post. Material also syndicated by Edit International in Florida. US editor for The Drum.

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