Digital music service Spotify has acquired around $100 million in new funding, a source close to the situation told Adweek this afternoon (Nov. 14).
The source wouldn't name investors. But a story by The New York Times says that Coca-Cola is responsible for $10 million, while $50 million is coming from Goldman Sachs and $15 million from Fidelity Investments. Other potential players in the round of funding were not disclosed by the Times' report.
Six-year-old Spotify, which declined to comment, is now valued at roughly $3 billion. It has around 15 million users, including 4 million paid subscribers, spread out among 17 countries. Last year, it raised $100 million from Kleiner Perkins Caufield & Byers and DST Global and was valued at $1 billion.
For Coke, the investment deepens an ads-based global relationship with Spotify that was announced in April, when the two firms unveiled a branded app for the 2012 Summer Olympics in London. The app was the result of a two-day Coke-branded hacker event where developers got together during early spring in New York City to pitch products on the Spotify API.
Additionally, Coke's investment underscores an arms race of sorts between the beverages brand and rival PepsiCo. Through concert series and other music-related efforts, it's become clear that both want to be known as the "music brand" in order to secure the youth market for decades to come.