Updated
Spotify, the streaming music service with more than two million users across Europe, may close a round of investment totaling up to $50 million and valuing the company at $250 million, the Financial Times reported today. The Swedish startup has reportedly piqued the interest of Hong Kong billionaire Li Ka-Shing&'s charitable foundation and London venture capital firm Wellington Partners. (Ka-Shing, pictured left, invested $60 million in Facebook last year.)
Heralded as a potential iTunes killer, the Swedish start-up boasts a library of more than six million tracks available for free streaming. The company has said it wants to be &''better than piracy,&'' by making free streaming dead simple and is poised to make waves if Apple approves its iPhone app.
A $250 million valuation will put the pressure on the young company to deliver high-octane results where other music startups have failed because of steep royalty fees. Spotify has three levels of service: free streaming with ads, a day pass at 99 pence that gives access without advertisements, and a monthly premium subscription at‚ ‚£9.99, which gives access to higher-quality streams, early releases and no advertisements whatsoever.
Absurd story update: Spotify did respond, but instead of confirming or denying the news, they said &''Great stuff!&'' and then wanted to use a more flattering photo of Ek (dutifully added at left). Spotify adds: &''We never comment on speculation. One of the benefits of being a private outfit!&''
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People: Li Ka shing
People: Li Ka shing
Kim-Mai covered social networking for VentureBeat until July 2010. To reach VentureBeat's current writers, email tips@venturebeat.com.
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