Spotify is reportedly in the process of raising $500 million in funding, a move that could open up new avenues for expansion, though delay its plans to go public. Citing sources, both The Wall Street Journal and Financial Times say that the streaming music company has hired Goldman Sachs to help it raise the funds, which would value it at around $7 billion. The round would be Spotify's biggest yet, following the $250 million it raised in November 2013 led by venture capital firm Technology Crossover Ventures.
Half a billion dollars won't get you Taylor Swift
There have been several signs Spotify has been on its way to going public, including comments from co-founder Daniel Ek saying that investors would probably want to get their money back, as well as curious company job listings. Even so, Spotify and others like it have faced an uphill battle in being profitable, as well as increased competition from Google and Apple, which own competing streaming services. There's also been some pushback from artists like Taylor Swift, who have shunned making their newest music available there versus turning to digital sales.
Spotify currently has 60 million users worldwide, though only 15 million of those users actually pay for the service. Those numbers could increase as part of a deal announced yesterday with Sony, which has Spotify replacing Sony's generally terrible Music Unlimited service on the Playstation Network.