Social music service Spotify is preparing to raise hundreds of millions of dollars in a deal that would value the company at as much as about $4 billion according to sources with The New York Times. Goldman Sachs is going to participate in the round with about $100 million from their wallet. Spotify’s total round of funding would be at about $220 million.
Spotify was founded in 2006 and operated for several years in Europe before launching in America last year. Spotify was integrated into Facebook and their growth really shot up. Spotify has about 19.9 million monthly active users.
Spotify CEO Daniel Ek said that the company may hit $889 million in revenue this year, but they expect to record a loss. This past February, Spotify raised around $100 million in a funding round led by Kleiner Perkins and DST Global.