Sweden’s TeliaSonera has bought a 1.4% stake in Spotify for US$115m as part of a funding round that values the music streaming service at about US$8.5bn.
The two companies’ new strategic partnership will also see them commit resources, staff and…
Sweden’s TeliaSonera has bought a 1.4% stake in Spotify for US$115m as part of a funding round that values the music streaming service at about US$8.5bn.
The two companies’ new strategic partnership will also see them commit resources, staff and other assets to a “joint innovation agenda”, the Stockholm-based telco said in a statement. A joint TeliaSonera-Spotify team will be set up to run the projects, focusing on areas such as media distribution, customer insights, data analytics and advertising.
The companies have cooperated for about five years but this is TeliaSonera’s first equity investment in the music subscription service.
TeliaSonera president and CEO Johan Dennelind commented: “We’ve set out to create a new-generation telco where innovation is key to our success. Spotify is a great company, loved by customers and with a world-class take on innovation I’m excited to join Spotify’s journey as an investor and key partner.”
Spotify board chairman Martin Lorentzon has been on the TeliaSonera board since 2013, but the telco said he did not take part in the talks or decision leading to the partnership.
Spotify raised a total US$526m in the funding round, with other investors including Goldman Sachs, which ran the transaction, and investment funds in Europe, the US and Canada, according to multiple media reports. These included British asset managers Baillie Gifford, Lansdowne Partners and Rinkelberg Capital and US firms Halcyon Asset Management, GSV Capital, DE Shaw & Co Technology and Crossover Ventures, Northzone and P Schoenfeld Asset Management. Canadian hedge funds Senvest Capital and Discovery Capital Management also contributed.
Spotify announced today that it has amassed more than 20 million subscribers and more than 75 million active users.
