Spotify

Spotify Raises $1 Billion in Convertible Debt

Spotify Raises $1 Billion in Convertible Debt
Image credit: Sorosh Tavakoli | Flickr
1 min read
This story originally appeared on Reuters

Spotify has raised $1 billion in convertible debt from private equity firm TPG Capital and hedge fund Dragoneer Investment Group, a spokeswoman for the music streaming service said.

The Wall Street Journal first reported the deal on Tuesday.

The deal is expected to close at the end of this week, Spotify spokeswoman Marni Greenberg confirmed to Reuters. Terms were not disclosed.

Spotify is facing increasing competition from companies including Apple Inc.'s Apple Music, Pandora Media Inc. and newer rivals such as Europe's SoundCloud Ltd. and U.S. music producer and rapper Jay Z's Tidal.

TPG’s growth arm, which specializes in growth equity and middle-market buyout opportunities, and special situations arm are investing in Spotify.

Earlier on Tuesday, SoundCloud launched a music streaming service in the United States starting at $9.99 per month.

(Reporting by Alan John Koshy in Bengaluru; Editing by Kirti Pandey and Cynthia Osterman)

More from Entrepreneur

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Related Books

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

Spotify Is Launching Its Video Service This Week