![]() ![]() Once Sony and Warner Music sign on, that number could double. ![]() That's apparently just for the two deals it recently signed with Universal Music Group and indie licensor Merlin. The filings released this morning also show that Spotify has agreed to more than $2 billion in minimum payments to record labels over the next two years. ![]() Investors can convert their debt to equity at a 20% discount of Spotify's IPO share price, and if there is no IPO within a year, their discount increases 2.5% every extra six months.Īdditionally, the new investors can sell their shares just 90 days after the IPO, well before the 180 day lockup for Spotify’s other investors and employees. For starters, Spotify must pay 5% annual interest on the debt, adding 1% more every six months for a total of up to 10%. That last #1 billion came with some potentially onerous terms, however. That put Spotify's pre-IPO total cash intake at $2.56 billion. In its 13th funding round, completed early last year, Spotify raised $1 billion, this time in debt funding from TPG, Dragoneer and clients of Goldman Sachs. With losses like that, it's no wonder that Spotify went in search of cash last year and accepted difficult terms. You can watch it below: The Spotify navigation bar has also been updated as part of this experiment, with a Discover icon appearing on the fourth tab of the bar in between the Home and Search. New filings show that in 2016,Spotify lost $601.4 million, up a troubling 133% from the $258 million that the music streamer lost in 2015. ![]()
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