Spotify will soon be worth more than $8 billion

Photo of author

By Larry Banks

Popular music streaming service Spotify is very close to a deal worth $400 million of new funding from various sources including Goldman Sachs and Abu Dhabi’s sovereign wealth fund, the Wall Street Journal reports. This means that Spotify would be valued close to $8.4 billion.

Spotify double rival Pandora’s market capitalisation

This valuation means the streaming audio company would be worth double that of its nearest rival pandora, which has a market capitalisation of around $3.5 billion.

The funding developments come just a few months after it was reported that Spotify was seeking as much as $500 million in new venture capital funding. The company is also rumoured to be talking to various Silicon Valley venture capitalists and asset managers all over the world, claim sources who spoke to the Wall Street Journal.

Spotify App

Spotify’s new funding would be a strategic move for the company, as it will soon face increased competition  from services such as Apple’s much-vaunted Beats music streaming service and the recently re-launched Tidal, which was bought by rapper Jay Z recently and offers all-you-can eat high quality audio. Spotify remains one of the most popular streaming audio services, but it remains to be seen what it will do with the new investment funds.

SOURCE: The Wall Street Journal

Images Courtesy of DepositPhotos