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Spotify secures $250 million in new financing, now valued at $4B

Spotify gets re-evaluated at $4 billion after managing to secure $250 million in new financing

| Apps News | Posted: Nov 21, 2013 11:57 pm

Today reports have surfaced that indicate that the industry's largest mobile music streaming service, Spotify, has managed to secure $250 million in financing which raises the company's valuation to the $4 billion mark. That is up more than $1 billion in just one year.

 

TweakTown image news/3/4/34049_1_spotify_secures_250_million_in_new_financing_now_valued_at_4b.jpg

 

Unfortunately, even with a valuation of $4 billion, Spotify can not seem to make money. The cause of its negative cash flow stems from what many consider an antiquated business model that many big-name record labels are holding onto quite tightly. Spotify has managed to increase its revenue in just one year to more than $600 million, but its losses also increased to $77 million. Unless Spotify figures things out in the next few years, we may have to bid adieu to the streaming service we so dearly love.

NEWS SOURCE
Mashable.com

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