UPDATED: This morning, news broke that Spotify has landed a $200 million credit line from a consortium of Goldman Sachs, Morgan Stanley, Credit Suisse and Deutsche Bank, according to several sources. Banks often pitch loans to tech companies hoping to win an underwriting role in a future IPO. The credit facility is the latest in a string of strong signs that Spotify is planning an IPO.
Last week Spotify acquired ubiquitous music analytics firm The Echo Nest; a move seen by some analysts as strengthening its portfolio before announcing a public stock offering. In February, a Spotify recruitment ad sought an External Reporting Specialist to "prepare the Company for international financial standards," as required by U.S. Securities and Exchange Commission (SEC) guidelines for a company planning an initial public stock offering. The original version of the ad also named the SEC, according to Reuters.
In November, Spotify raised another $250 million in a funding round led by Silicon Valley firm Technology Crossover Ventures. Investors then were placing the valuation of the music streamer somewhere "north" of $4 billion, according to multiple sources. A successful IPO could put Spotify's value north of $8 billion, one investment banker told Reuters.
Previous Spotify funding rounds from 2008-2012 totaled $288 million, with Goldman Sachs and Klein Perkins in for $100 million each. At $4 billion, Spotify's valuation was nearing Pandora's public market capitalization of $5.7 billion, according to the WSJ.