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Spotify has attracted against Apple half a billion dollars

Popular music service Spotify has raised $526 million from a consortium of investors. Such a large investment the company needs to successfully withstand the onslaught of a new competitor in the market of music streaming – Apple Music.

As reported by “Vedomosti”, with new investors in the company’s canadian hedge Fund Senvest Capital, the British company asset management Baillie Gifford, Landsdowne Partners and Rinkelberg Capital, and Discovery Capital Management and the Swedish-Finnish operator TeliaSonera.

The media have reported the deal, citing anonymous sources close to the participants. The only participant in this round of funding, which released an official press release, TeliaSonera became. She said that was the owner of 1.4% Spotify, paying for this share. On that basis, Spotify was valued at $8.2 billion Sources indicate a slightly different score in this round is $8,53 billion.

The last time Spotify has attracted funding in September last year. Then the company was valued at $5 billion Since its Foundation, the Swedish company has raised $1.1 billion investment. In particular, in 2011, Spotify has received $100 million from a consortium of investors with Fund DST Global, which is controlled by Russian businessman Yuri Milner.

This major investment need Spotify to withstand the onslaught of the new Apple Music service. Apple, which previously only sold music through the iTunes store, this week announced a streaming service Apple Music. It is a service that allows a user to listen to music on your iTunes library, and in the mode of streaming – i.e. don’t buy a separate music tracks and listen to them online from the Apple.

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Service Apple pay – the user is asked to pay $9.99 a month. Spotify has a slightly different business model: a Swedish company, offers its users to listen to music for free – for advertising. To opt out of advertising, you will have to pay for a monthly subscription of $9.99 – the same price that Apple offers. According to our data, Spotify now has 60 million users worldwide, 15 million of them paying for a subscription.

At the beginning of the year, it was reported that Spotify was not going to open an office in Russia and to offer our services. The alleged reasons for the refusal of the company from the start in Russia – failed talks on partnership with cellular operators “the big three” and the fall of the ruble. The latter, obviously, made it impossible for the service to offer their services at an affordable for Russians and competitive price.

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