There's more trickling out about Spotify's upcoming funding round. The New York Times pegged the upcoming level of financing at a super-sized $220 million - for this round alone. That's an amount that would value Spotify at roughly $4 billion.
But wait, it gets better: Goldman Sachs is expected to be one of the contributors, with a contribution of more than $100 million. The round is expected to close in a matter of weeks, and opens all sorts of IPO speculation.
Universal Music Group attorney Harvey Geller - a feared figure responsible for some serious settlements - is now out of the mega-label. The rumor has been floating around for a few days; Peter Kafka of the Wall Street Journal put it in writing. Attorneys speaking to Digital Music News are questioning why the exit is happening now, and whether Geller will be abruptly departing ongoing cases. But broader, top-down pressures are making high-paid executives a hunted species at UMG, according to sources.
Surprised? Van Halen has abruptly cancelled the final three months (and 31 dates) of its North American tour. Infighting seems likely, but no official statements (or postponements) have been issued.
Live Nation and former parent Clear Channel may be headed towards an out-of-court resolution related to anti-competitive ticket pricing. The pair have been battling a string of class action lawsuits that date back to 2002; resolution terms will probably remain undisclosed.
Speaking of Clear Channel... these ain't Pandora numbers, but iHeartRadio has just hit 10 million registered users. Pandora has roughly 150 million, according to the latest count.
Retronyms has just released Tabletop 1.5, an improved production app that includes lots of SoundCloud tie-ins. That includes collaboration with other SoundClouding producers, and far easier interaction with uploaded material. More here.
Elsewhere, Jay Boberg has been named Chairman of the Board for Isolation Network, the parent company of INgrooves Fontana.
And in other yet-another musical obit, banjo extraordinaire Doug Dillard has passed away. He was 75.
As expected Friday, May 18, 2012
Spotify and all of its investors know that the Spotify business model won't work ("losing money on each song play? no problem. we'll make it up in volume!"). But if they could just get to an IPO they could all hit a payday and push the company off to the suckers.
Enter Goldman Sachs.
They aren't 'investing' in Spotify. They are taking a deposit on their underwriting fees for taking Spotify public in the future.
Hopefully, the public won't be fooled again into buying stock in a company with a failed business model (like they were with Pandora and Groupon). But I bet they will.
The sad part of the Spotify story is that they are going to get to their payday on the backs of the Artists who aren't getting paid anything for the use of thier music. Not sure how Ek and company sleep at night.
Maybe the artists should set themselves up as a class and figure out how to sue Spotify to get their fair share of the company? Not sure if this is possible, but I know some lawyers read this blog.
@jeff_spears Friday, May 18, 2012
Van Halen cancels tour with 3 months to go...
not shocking but ridiculous.
Helmi Monday, May 21, 2012
I smell a "Emerging Markets 2.0" bubble here.
Goldman Sachs was very quick to sell far far more than planned of its Facebook shares and today they are ATM -12%. When there is no substance, there is no money.
Just like Facebook with its pathetic 1 billion in profits and around 4 billion in revenue aint worth 104 billion Dollars, Spotify aint worth 4 billion Dollars either. It is nothing but overhyped bla bla that will implode as soon as it hits the (wall) street.
Some people just do not learn from the past.