After reports that Spotify wants to bring in 4.3 billion in debt financing reports Sky News that the international private equity giant TPG can become music service lenders.
TPG Capital is in talks with Spotify regarding a debt financing, reports Sky News. TV channel sources say that TPG could lend as much as $ 500 million, equivalent to 4.3 billion, in Spotify.
According to Sky News Spotify opportunity to double funding to 1 billion dollars, equivalent to 8.5 billion.
the funding that Spotify is not about seeking an outright new issue but a so-called convertible. According to leaked documents to SvD , investors would borrow money at an interest rate of four percent. If Spotify, however, choose to list the company within a year as lenders may replace the loan into shares in Spotify – with a discount of 17.5 percent .
Why Spotify offers a large rebate has led to speculation that the company is approaching an IPO. Other data suggest that Spotify plans to acquire one of its competitors.
The Financial Times has previously reported that Spotify may spend part of the year taking into strategic investments. One possible candidate who was singled out by the magazine’s US Internet radio service Pandora. And as recently as on Friday it was rumored that Spotify would have interest in purchasing the music service Tidal.
Read also: Spotify, Pandora, Tidal, SoundCloud – who buys whom?
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