Goldman Sachs Making Up to $19.2 Million on Spotify Debt Round…

Spotify's $1Billion Debt Financing Filing Has Been Revealed...

Last month DMN first broke the story  revealing Spotify’s  $1billion debt financing.

Now, an official SEC form D filing has been revealed which confirms the earlier reports.

The filing highlights further information beyond those previously outlined and allows us to take a greater look at the conditions of the deal.

It shows TPG and Dragoneer – the issuers of the $1 billion expect the agreed amount to be paid back within one year. It also highlights the fact that Spotify has to pay a massive fee of $19,256,50 in finders fees and sales commission. 

What does this mean for Spotify?

Firstly, the large injection of cash into the business allows Spotify to re-invest in its business model which could be exactly what the company needs in order to grow at an accelerated rate beyond its competitors like Apple Music for example. The debt financing also allows them to continue to run the business the way they want to without having investors opinions to consider like they would have to if they went with equity financing.

However, a massive $1 billion to pay back over the course of one year is a huge amount of revenue that the company will have to wave goodbye to. Large monthly repayments can put major financial strain on a company. Not to mention that large figure just short of $20 million that the service has to pay out to Goldman Sachs for just simply securing the financing.

Spotify must have some big plans that it wants to implement in order to require such a large sum of financing. The question is, is it going to pay off? The obvious outcome for Spotify would be for it to leapfrog past its competitors and widen that paid subscriber gap. But, if the financing isn’t placed in the right way it could spiral out of control and Spotify may loose its top spot in the streaming market.

Another issue is that companies often find it easy to take the money but don’t necessarily find it as easy to pay back.

Spotify $1billion Debt Financing Filing

The post Goldman Sachs Making Up to $19.2 Million on Spotify Debt Round… appeared first on Digital Music News.

The Beatles Streams Surge In First 100 Days On Spotify

Beatles Streams Surge In First 100 Days On Spotify

The Beatles were one of the latest to distribute their music on streaming services and only made it to the likes of Spotify, Apple Music, Tidal and some of the other key subscription services in late December last year.

Despite their late move to these platforms they have managed to rack up some serious streaming numbers. They have only been present on Spotify for just over 100 days and the service says that during this period of time the iconic British foursome have out-shined other major artists in the music industry like Ed Sheeran, Ariana Grande and Sia.

The rock group now boasts a massive 6.5 million monthly listeners, and of these listeners 67% are under the age of 35.

The Beatles catalogue of songs was released on the platform just two days before Christmas which most likely would have helped to boost streaming numbers. In the first 48 hours of availability Spotify reported that more than 50 million Beatles songs were played, and during the first three days more than 70 million Beatles songs were streamed.

Despite the members of the group parting ways over 45 years ago they still remain relevant today and interestingly enough they are being listened to by a much younger generation than expected. In fact most of the people listening to the songs on Spotify weren’t even born when they released the Beatles released their official last album.

Guess you can’t beat the classics…

(Image Public Domain)

The post The Beatles Streams Surge In First 100 Days On Spotify appeared first on Digital Music News.

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