Music streamer Spotify can now count on Coca-Cola and Fidelity to back their venture, according to a New York Times Media Decoder blog that gives the details on the company’s recent private deal.
Coca-Cola will take on the role of minority investor, supplying some 10% of the Spotify’s $100 million financing. This revelation comes on the heels of April’s announcement of a partnership between Coke and Spotify. Fidelity Investments is credited with supplying 15%, and Goldman Sachs is chipping in 50% of the amount needed to bring Spotify’s value to $3 billion. The rest of the funding will come from current investors.
The deal coincided with Spotify’s expansion to Ireland and Luxembourg, but the growing service has yet to prove profitable, having lost $57 million in revenue just in 2011.
