Luxembourg – European streaming music service Spotify, which
recently signed deals with two major record labels for its planned U.S. launch,
is close to raising a new $100 million funding round at a valuation of around
$1 billion, TechCrunch reported, citing sources. The lead investor is rumored
to be Russia’s Digital Sky Technologies, which has also backed Facebook,
Groupon and Zynga.

Meanwhile, Sky News reports that venture capital firm
Kleiner Perkins Caufield & Byers has also taken a 5% stake in Spotify.

Spotify’s service, currently available in U.K., Sweden, Spain, Norway, Finland,
France and the Netherlands, counted 10 million users as of September 2010,
750,000 of whom are paying subscribers.



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(DMW previous coverage)