Is Spotify Worth Over $6 Billion?

Music streaming service Spotify has expanded rapidly in the past few years and, though the company has yet to go public, the service is reportedly seeking $500 million in funding in order to support further growth. While the growth of the company is certainly a prominent need, Spotify faces a difficult road ahead if they are to remain private. Pressing factors like prolonging investors financial return and further poor publicity bouts with big name artists like Taylor Swift will challenge Spotify’s ability to stand up to impressive competition from Google and Apple. Both Goldman Sachs and Wall Street have valuated the company to worth more than $6 billion, but the exact figure is yet to be determined. Spotify’s worldwide users amounts to $60 million, however, only $15 million actually pay for the service, making the company’s dilemma of insubstantial profits even more irksome. There are signs of progress though, as Sony announced yesterday that Spotify would be replacing the Music unlimited service on the Playstation network. Good news, nevertheless, the journey is far from over for the Spotify team.