Could Spotify Sell for $14 Billion or Is This a Joke?
As the ascension of streaming audio continues, the value of Spotify has risen as well. The noted streaming music library is reportedly priced at just shy of $14 billion and, according to Digital Music News, a deal is already in place regarding its sale and is awaiting final approval.
"Signatures and final approvals are ‘exceptionally close,’ with an announcement carefully planned for exactly one week from now," DMN reports. The deal, in the works for some time apparently, has come about following intense negotiations between Spotify and various major record labels. It was reported that representatives from both Universal Music Group and Sony Entertainment pushed hard at Spotify to do away with their free service and make it purely subscription based.
The Wall Street Journal reported earlier this year that Spotify was working with Goldman Sachs Group Inc. to raise about $500 million in financing, which would have put off any public stock offerings. At that time, the estimated worth of Spotify was closer to the $7 billion mark. WSJ are now set to publish a story next week regarding the sale, though a buyer has yet to be named.
“We’re finally making streaming fair for every musician and rights owner, and I’m happy that everyone can equally enjoy the spoils of our years of hard work,” states Spotify CEO Daniel Ek to the Journal, adding, “I hope our friends over at Pandora will follow our example.”
While ultimately good for the artists, many listeners will be left in silence -- and not just from Spotify. DMN also reports that YouTube "has agreed to stop showing free music videos entirely if Spotify agrees to close its free access tier at the same time."
This massive round of silence could come as early as next Wednesday, April 1st. A cruel April Fools joke perhaps? Tune in and find out.