When Spotify landed in the competitive U.S. digital music marketplace last summer, it was boosted by a cresting wave of good publicity, strong track record in Europe and a $100 million investment funding round that valued the company at $1 billion.
That wasn’t all: Given the strong demand for Pandora and LinkedIn IPOs (and even stronger anticipation for the eventual Facebook offering), Spotify CEO Daniel Ek’s timing for a U.S. launch seemed spot on.
Well, things have changed: Share prices for high profile tech IPOs such as Facebook, Zynga and Groupon have tanked, and as Spotify readies to close its latest round of fund-raising, the company looks likely to fall short of its goal. Instead of the $4 billion valuation that Spotify initially sought, the company will likely settle for something “slightly more than $3 billion,” according to The Wall Street Journal. Read More