Thursday, November 15, 2012

Coke's $10M Spotify Investment -- It's the Real Thing

Online music darling Spotify just closed another massive round of financing -- $100 million at a whopping valuation of $3 billion!  That brings Spotify's overall "take" to $288 million -- just chew on that for a minute.

Global marketing behemoth Coca-Cola (yes, that is what they are -- a marketing company) contributed $10 million to the Spotify cause in this round (as did Goldman Sachs, Fidelity Investments and others). Coke is no newbie in the world of digital music.  When I served as President & COO of online music pioneer Musicmatch "back in the day" (2002-2004), I negotiated one of Coke's first forays in the online music world via Musicmatch.  Musicmatch was one of the first to bring online music services to market (Internet radio, on demand music via subscription).  Yahoo! ultimately acquired the company in 2004 for $160 million.