Spotify could imminently reach a $4 billion valuation, even though it has yet to turn a profit and isn’t interested in a floatation, according to CEO Daniel Ek.
He also said that Spotify’s current expansion strategy has put the streaming music service on course for revenues to exceed $889 million (6 billion Swedish crowns) in 2012.
Ek gave this and other information to business daily DI (Dagens Industri), in his company’s native Sweden. According to the paper’s unnamed sources, Spotify is looking to raise another $200 million at a valuation of $4 billion. When asked about this, Ek replied, “”Yes, at those levels we would definitely be interested in talking (to investors about raising more money).”
This would follow the $100 million Series D round of investment from DST, Kleiner Perkins and Accel, which together valued Spotify at $1 billion.
Although Spotify currently reported $96 million in losses, Ek did not seem concerned. “Our focus is all on growth. That is priority one, two, three, four and five,” DI quoted Ek as saying. “But of course we expect to make a profit in the long run.”
Ek also said Spotify had no interested in going public. “We want to build this company over the long term. Therefore the stock market is not an alternative for us,” he told the paper.
The Local, which publishes Swedish news in English, cited a study from brokerage Nordnet that found Spotify was second only to Ikea on the list of Swedish companies Swedish people would like to invest in.
DI (Dagens industri) – Daniel Ek: Därför ökar Spotifys förluster
The Local [Swedish news in English] – Spotify CEO gives stock market the cold shoulder