Spotify is one of the top music streaming services available today, the company has around 30 million paid subscribers and now it has raised some extra financing for expansion.
According to a recent report by the Wall Street Journal, Spotify has raised a total of $1 billion from debt financing.
The new debt financing is in the form of $1 billion on convertible debt from investors and it apparently comes with some strict guarantees.
These new strict guarantees are tied to the company’s IPO, if the company files an IPO within the next 12 months, then the investors will be able to convert the debt to equity with a 20 percent discount on the IPO share price.
The discount then increases by 2.5 percent every six months, which would suggest that we may see an IPO from Spotify in the next twelve to eighteen months.
Source WSJ
Filed Under: Technology News, Top News