Sunday 19 November 2017

Spotify raises €880m in convertible debt

Spotify co-founders Daniel Ek and Martin Lorentzon
Spotify co-founders Daniel Ek and Martin Lorentzon

Spotify has raised $1bn (€884m) in convertible debt from private equity firm TPG Capital and hedge fund Dragoneer Investment Group, a spokeswoman for the music streaming service said.

The Wall Street Journal first reported the deal on Tuesday.

The deal is expected to close at the end of this week, Spotify spokeswoman Marni Greenberg confirmed to Reuters. Terms were no disclosed.

Spotify is facing increasing competition from companies including Apple's Apple Music, Pandora Media and newer rivals such as Europe's SoundCloud and US music producer and rapper Jay Z's Tidal.

TPG’s growth arm, which specializes in growth equity and middle-market buyout opportunities, and special situations arm are investing in Spotify.

Earlier on Tuesday, SoundCloud launched a music streaming service in the United States starting at $9.99 per month.

Reuters

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