REUTERS - Spotify has raised $1 billion in convertible debt from private equity firm TPG Capital and hedge fund Dragoneer Investment Group, a spokeswoman for the music streaming service said.
The Wall Street Journal first reported the deal on Tuesday.
The deal is expected to close at the end of this week, Spotify spokeswoman Marni Greenberg confirmed to Reuters. Terms were no disclosed.
Spotify is facing increasing competition from companies including Apple Inc's Apple Music, Pandora Media Inc and newer rivals such as Europe's SoundCloud Ltd and U.S. music producer and rapper Jay Z's Tidal.
TPG's growth arm, which specializes in growth equity and middle-market buyout opportunities, and special situations arm are investing in Spotify.
Earlier on Tuesday, SoundCloud launched a music streaming service in the United States starting at $9.99 per month.
(Reporting by Alan John Koshy in Bengaluru; Editing by Kirti Pandey and Cynthia Osterman)
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app