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.

@CharlesJGantt
Published Thu, Nov 21 2013 5:57 PM CST   |   Updated Sat, Aug 8 2020 10:29 AM CDT

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.

Spotify secures $250 million in new financing, now valued at $4B | TweakTown.com

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

A web developer by day, Charles comes to TweakTown after a short break from the Tech Journalism world. Formerly the Editor in Chief at TheBestCaseScenario, he now writes Maker and DIY content. Charles is a self proclaimed Maker of Things and is a major supporter of the Maker movement. In his free time, Charles likes to build just about anything, with past projects ranging from custom PC cooling control systems to 3D printers. Other expensive addictions include Photography, Astronomy and Home Automation.

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