Spotify valued higher after Apple announces music service

SPOTIFY'S valuation has reportedly grown to US$8.53 billion after the completion of a $526 million fundraising round, just days after the Apple announced a rival streaming service.

Apple has unveiled Apple Music, a streaming service and 24-hour online radio station, that was seen as a potential threat to existing platforms like Spotify and Jay-Z's artist-friendly Tidal.

The widely expected announcement didn't put off investors like Nordic telecommunications firm TeliaSonera from ploughing cash into the Stockholm-based company, which is looking to expand into new forms of content.

TeliaSonera paid $115 million for a 1.4 per cent stake in Spotify, boosting Spotify's value past the $8 billion mark.

Spotify has been valued around the $8 billion mark since April, when the Wall Street Journal, reported that a $400 million round of funding meant Spotify was worth $8.4 billion.

"Both companies are also committing resources, staff and other assets to ignite the joint innovation agenda within areas such as media distribution, customer insights, data analytics and advertising," TeliaSonera said in a statement.

Sportify adviser Goldman Sachs also chipped in through a fund, while Halcyon Asset Management, GSV Capital, D.E. Shaw & Co., Technology Crossover Ventures, Northzone and P. Schoenfeld Asset Management, were also involved, the WSJ added.

The news comes as reports emerged that Apple Music has already ruffled the feathers of regulators in the US.

The attorneys general of New York and Connecticut are reportedly looking into whether Apple pressured record labels, or colluded with them, to pull backing for services like Spotify.


REUNITED: Band back together after overcoming tragedy

premium_icon REUNITED: Band back together after overcoming tragedy

Family overcome close call to make their return to Stanthorpe this weekend for the...

Tiny Dancer born after mum goes into labour at Elton concert

premium_icon Tiny Dancer born after mum goes into labour at Elton concert...

Elton John inspires a mother to go into labour during Tiny Dancer

‘Every year is significant’: Bank marks milestone

premium_icon ‘Every year is significant’: Bank marks milestone

BANK show their community appreciation on fourth birthday celebration