Spotify is reportedly raising $1 billion in debt as streaming competition heats up

Nathan Mcalone

Mar 30, 2016, 01:57 IST

Spotify CEO Daniel Ek

Spotify is reportedly raising $1 billion in debt as streaming competition heats up, according to CNBC, who cites Dow Jones. The capital reportedly comes from TPG Capital, Dragoneer, and Goldman Sachs.

Previous reports from Bloomberg and Sky News had indicated that Spotify was seeking to raise $500 million or more in debt from TPG Capital and others, with Goldman Sachs advising.

This loan could be converted to stock if Spotify goes public, according to Bloomberg.

Complimentary Tech Event

Transform talent with learning that works

Capability development is critical for businesses who want to push the envelope of innovation.Discover how business leaders are strategizing around building talent capabilities and empowering employee transformation.Know More

Spotify has 30 million paying subscribers, CEO Daniel Ek said earlier this month.

Competition in the streaming space has intensified over the past year, with the launch of Apple Music (over 11 million subscribers in February), the rebrand of Tidal (3 million subscribers in March), and Tuesday's entry of SoundCloud into the premium streaming market. Pandora has also spoken of plans to enter the streaming market as quickly as possible.