Business

Spotify value up to tune of $4B

Music service Spotify is close to completing a new financing round for nearly $400 million, The Post has learned.

The latest funding round is said to value the company at an eye-popping $4 billion — almost double its estimated $2.2 billion value last year.

Several sources said Goldman Sachs is taking the lead in drumming up interest in Spotify, which is in expansion mode.

The company is planning to use the cash to build scale and serve its growing subscriber base, sources said.

“Spotify wants to grow geography, building out in other countries, and they need money for rights negotiations,” one source said.

An all-you-can-eat streaming music service, Spotify offers a free, ad-supported version, along with premium paid tiers at $5 and $10 for those who don’t want to listen to advertising.

Spotify generated $236 million in revenue last year and losses of $57 million.

The service, run by Swedish tech entrepreneur Daniel Ek, claims 15 million users worldwide, including 4 million paying customers.

Recent reports also suggest that Spotify intends to move into penthouse office space in the Flatiron neighborhood.

A Spotify spokesman had no comment.

Facebook boss Mark Zuckerberg called out Spotify earlier this week as a company that was making best use of the social network’s platform.

Spotify users must sign in via Facebook, which enables them to share their music interests with friends.

One source said that while the major music labels all have a small stake in Spotify, Warner Music Group’s new owner, Access Industries, has a particular interest in upping its holding.

Access Industries, controlled by Russian-born billionaire Len Blavatnik, has been expanding the firm’s digital holdings — for instance, taking a sizable stake in French streaming service Deezer.

While Deezer isn’t about to launch in the US, sources said it’s scoping out other digital US-based music businesses for acquisition.