Spotify worth $300 million
On 17 Feb, 2010, Swedish online music service Spotify received a €11.six million investment from Sean Parker, co-founding father of Napster and former Chief executive officer of Facebook, based on documents retrieved by Computer Norway in the Trade Register of Luxembourg, where Spotify’s parent clients are registered. An investment has provided Parker a five percent stake in the organization along with a put on its board of company directors.
This latest investment puts its valuation of Spotify in general at €230 million ($300 million), up from the previous valuation of €190 million just last year.
Parker may be the latest inside a string of investors flocking to inject money in to the Norway-based company. Spotify elevated greater than €50 million in share premiums this past year, based on the company’s lately filed annual report for 2009, also retrieved in the Trade Register of Luxembourg.
The main investors happen to be Nordic investment capital firms Northzone Ventures and Creandum, Germany-based VC firms Wellington Partners and Hommels Holding, and Chinese businessman Li Ka-shing, who owns Hutchison Wampoa and a part of mobile operator 3. Last fall it had been also says Spotify had offered an 18 percent be part of the organization to record labels The new sony BMG Music, Universal Music, Warner Music, EMI and Merlin to have an minor amount of cash.
Swedish founders Martin Lorentzon and Daniel Ek still control a lot of the shares in the organization.
Based on the annual report, parents company’s total assets by 12 ,. 31, 2009, were €83.9 million, the majority of which is based on its subsidiaries in Norway and also the U.K. The Swedish subsidiary Spotify AB includes a internet book worth of €40 million, and also the internet book worth of Spotify Limited within the U.K. is €11.4 million.
Spotify’s parent company in Luxembourg reported a €0.six million loss for that financial year 2009, as the Swedish subsidiary reported a little profit of €1.5 million.
Broadly famous Europe, the background music service continues to be battling to go in the important U.S. market, so far neglecting to achieve the required handles U.S. record labels. The 2009 week U.S. entertainment magazine Billboard reported that Sean Parker was set to mind Spotify’s U.S. operations and also to reboot stalled negotiations using the record labels. However, Spotify representatives have since described these claims as inaccurate.
Spotify has become searching in a much-delayed U.S. launch later this fall.