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Stop me if this post sounds familiar…
Remember that $100 million which TechCrunch back in February said Spotify was supposedly raising, valuing it at $1 billion? Now the round has closed, from heavyweights DST, Kleiner Perkins and Accel, AllThingsD reports.
The money is for international expansion, starting with the U.S., a process which recently kicked in to high gear. Nevermind having promised U.S. launch two years ago – as we’ve been reporting, now that it’s hired U.S. execs, charmed parts of the industry and gained licenses from three of the four major labels, the launch is actually likely to finally happen this summer, if it can secure Warner Music Group (NYSE: WMG), the most sceptical. Expect a launch during or after July, Spotify exec Jonathan Forster says.
Spotify will be entering a more crowded market than Europe has for unlimited-access subscription music services, but one that is still young and with a product that many consider first-rate.
In gaining U.S. licenses, it has had also to scale back the amount of free music European and Scandinavian users can hear before having to subscribe. U.S. labels are more sceptical on the inclusion of free music in a freemium mix.
So, is Spotify really worth $1 billion? Let’s do some math…