Connect with us

Hi, what are you looking for?

EDM News

Spotify Raises $1 Billion in Debt To Fight Apple Music

As more and more players enter into the game of on-demand music streaming, Spotify is looking to cement itself as the leader.

Spotify raised an additional $1 billion in convertible debt from TPG, Dragoneer and clients of Goldman Sachs. By raising $1 billion debt rather than equity, “Spotify doesn't have to worry about poor signaling from a down-round raised at a lower valuation than the $8.5 billion it set in June 2015” according to TechCrunch.

“The summary is that Spotify has locked itself into a contract that will start getting much more costly after 12 months. After two years, for example, that $1 billion cash injection could cost the company some $1.25 billion worth of shares and more than $100 million in interest — it's in the company's best interest, then, to go public sooner rather than later,” reported Engadget.

“This financing gives them the strategic resources to further strengthen their leadership position.” The money will be spent on growth and marketing for Spotify.

You May Also Like

Editorial

Having Spotify stats at your fingertips can be a real game changer. Spotify is the world's largest streaming platform, and understanding your audience is...

EDM News

Looking for a unique way to promote your latest album? Check out the best animated album covers and Spotify canvas maker services to take...

EDM News

Spotify is a music streaming service that has taken the world by storm. Millions of people use it to listen to their favorite songs...

Advertisement

EDM Sauce Guides

Portable Speaker
Best 2 Person Tents

Best Clear Backpacks
Best EDM Outfits
Best Bubble Slides

Artist of the Week

Artist of the Week

Good afternoon and welcome to our next Artist of the Week, InteliDey. Hypnotic AI is a hypnotic LoFi hiphop music track created by an...