Swedish music service Spotify is considering an introduction on the stock exchange to finance further expansion.
• Spotify launches on Apple's iPhone
• Spotify is heading for China
• Spotify overtakes Apple’s iTunes
• Spotify close to $50 million deal
• Record labels part owner of Spotify
• Swedish crackdown on piracy
Spotify, the Swedish digital music service legally offering instant access to millions of tracks, is looking for new capital to boost its global expansion – and an introduction to stock-exchange listing is a likely option.
The music service currently has some 5 million members across Europe and grows with 30,000 new users every day. The company’s goal is to have a turnover of 1 billion dollar within five years.
Before the end of the year Spotify will be launched in the US and China. To finance the rollout the company has secured investments from a number of high-profile investors, including Hong Kong billionaire Li Ka-shing's charitable foundation and British Wellington Partners. The $50 million investment is understood to value the group at $250 million.
Now one of Germany’s most famous venture capitalists, Klaus Hommels, has become a new part-owner of the company, business daily Dagens Industri wrote on Monday.
“Klaus Hommels will become a minority owner of Spotify”, said Daniel Ek, who founded the company together with Martin Lorentzon in 2006, to the newspaper. “Klaus will be one of the members of the board and his fantastic network will be a great resource”.
Klaus Hommels has been a pioneer investor in similar projects, such as Skype, Facebook and Stardoll.
Daniel Ek and Martin Lorentzon are still majority owners of Spotify. To raise more cash they might sell their shares or – more likely – introduce the company on the stock exchange.
“We have several serious bidders for the entire company but an introduction to stock-exchange listing is a more likely alternative”, said Daniel Ek, adding:
“My goal is to build a company that can stand by itself. It would be good if we didn’t, like many others, got bought by an American actor”.
In an interview with weekly Veckans Affärer, Daniel Ek confirms that he and Martin Lorentzon owns their shares in Spotify via a company on the tax haven Cyprus. Spotify’s parent company is registered in Luxembourg.
According to record label executives, Spotify - launched last year – has already become more important than Apple’s music store iTunes.
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Last Updated (Monday, 21 September 2009 09:56)