Connect with us

Spotify Nears $8.4 Bil Valuation, Attracting Sovereign Wealth

Published

on

Image: Spotify.com screenshot - April 12, 2015

Image: Spotify.com screenshot – April 12, 2015

Spotify AB, a streaming-music platform, is raising its seventh round of capital approaching US$ 400 million for a private placement. This would value the song-streaming company at US$ 8.4 billion. Spotify raised US$ 250 million in its last round back in November 2013. Spotify, first launched in 2008, competes heavily against Pandora Media Inc. and Apple Inc. In Europe, Spotify competes with Deezer – mostly in France. Another up and coming competitor is the Tidal streaming service which is being backed by U.S. rapper Jay Z (real name Shawn Corey Carter). Jay Z has attracted music artists such as Rihanna, Kanye West, Beyoncé (Jay Z’s wife), Coldplay and Taylor Swift. In 2014, Taylor Swift pulled her work from Spotify, claiming at the time that music streaming services didn’t value her art. She penned an op-ed in the Wall Street Journal back in 2014 saying, “Important, rare things are valuable. Valuable things should be paid for. It’s my opinion that music should not be free, and my prediction is that individual artists and their labels will someday decide what an album’s price point is. I hope they don’t underestimate themselves or undervalue their art.”

Spotify CEO Daniel Ek responded back to Taylor Swift’s comments, saying that Spotify paid a total of US$ 2 billion in royalties to the music industry at the time.

Growing Subscriber Base

Spotify has around 15 million paid subscribers compared to March 2013’s figures of 6 million paid subscribers. Publicly-traded Pandora and Spotify both operate at a loss and share a significant portion of revenue with their music label partners. For Spotify, Sony Corporation’s Sony Music Entertainment, Paris-based media conglomerate Vivendi SA’s Universal Music Group and New York-based Access Industries’ Warner Music Group own under 15% of the company. Access Industries is controlled by billionaire Len Blavatnik. For these record companies, getting into the music streaming business is necessary for business diversification. In 2013, for the first time, Universal Music Group’s digital sales surpassed CD sales. Furthermore, these companies see that streaming subscription sales could offset a recent decline in downloaded music sales.

Investors

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

CalPERS Names Yu Ben Meng as Chief Investment Officer

Published

on

The California Public Employees’ Retirement System (CalPERS) announced that Yu Ben Meng has been selected as the pension fund’s new chief investment officer (CIO). [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Ontario Nonprofit Network Awards Mandate to OPTrust

Published

on

The Ontario Nonprofit Network (ONN), a nonprofit network for the 58,000 nonprofits in Ontario, selected OPTrust to manage defined benefit assets. ONN selected OPTrust Select, the new defined benefit solution from OPTrust. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Temasek Wants More of Ola, Careem Acquires Commut

Published

on

ANI Technologies, which owns ride-hailing app Ola, is in key talks with Temasek Holdings and South Africa-based Naspers LLC on raising capital. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.