Los Angeles – European streaming music service Spotify is near closing a new funding round of $100 million or more, which would value the company at around $1 billion, TechCrunch reported, citing sources.
Russian private equity firm Digital Sky Technologies (DST) is thought to be the lead investor in the deal; the firm has also backed U.S. tech firms including Facebook and Zynga.
Spotify has raised about $117 million in funding to date, from backers including Founders Fund.
The company has been in thorny licensing negotiations with the major record labels and music publishers on licenses that will enable it to launch in the U.S.
In recent months, Spotify has reportedly signed Universal Music, EMI and Sony Music.
Earlier this week, Spotify general manager Jonathan Forster said publicly that the company is “signing the remaining deals” right now, but a U.S. launch won’t come “before July 5th,” according to SiliconValleyWatcher.