| 04 Dec 2023
TeliaSonera invests $115 million for a 1.4 per cent stake in Spotify

MUMBAI: Another round of funding for Spotify had TeliaSonera pumping in a whooping $115 million into the streaming service. It is estimated that after the fresh round of funding, Spotify is now valued at around $8 billion. The timing of the announcement shows that Spotify, which currently has over 60 million users remains unaffected by soon-to-be launched Apple Music.

The statement issued by TeliaSonera and Spotify stated that both companies “have decided to further boost co-operation.” Telecom operator-TeliaSonera will join forces with the music streaming service to take innovation to the next level.

Both companies have had more than five years of partnership. Through this equity investment, both companies have entered into new strategic partnership which will allow them to “commit resources, staff and other assets to ignite the joint innovation agenda within areas such as media distribution, customer insights, data analytics and advertising.” A joint TeliaSonera-Spotify team will be set up to run the project.

“We have a long and great relationship with TeliaSonera and I am pleased we are able to take it to the next level together with this strategic partnership”, said Spotify CEO and founder Daniel Ek.
TeliaSonera president and CEO Johan Dennelind said, “We have set-out to create a new generation Telco where innovation is key to our success. Spotify is a great company, loved by customers and with a world class take on innovation I am excited to join Spotify’s journey as investor and key partner.”

The statement issued by the company also revealed that Spotify chairman of the board Martin Lorentzon, who has been a member of TeliaSonera’s board of directors since 2013, “has not participated in the board’s discussions or in the decision leading up to the partnership.”

As the competition in music streaming increases, Spotify is readying itself with investments. In May this year, Spotify expanded its platform to video content, along with its music streaming service.