Coca-Cola, which is no stranger to music-related marketing, is taking a minority stake in Spotify. The deal is part of a new round of financing expected to bring in $100 million.
Whispers about a partnership have been circulating for weeks – starting in April when Coca-Cola said it had entered a not-very-specific marketing partnership with Spotify – but the New York Times today reported the financing round is completed and values Spotify at about $3 billion.
According to the New York Times, Coca-Cola is contributing about 10 percent, new investor Fidelity Investments is coming in with 15 percent, and Goldman Sachs brings 50 percent. The remaining 25 percent is coming from existing investors.
Coca-Cola launched its own U.K.-based digital music service in 2003, had a major European marketing partnership with Apple for music, and currently sponsors live music events, among other initiatives.
Spotify is not a profitable enterprise. Globally it has 4 million paying subscribers and 15 million users, and last year reported a $57 million loss on $236 million in revenue.
New York Times – Spotify Attracts Investments From Coca-Cola and Fidelity
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