• Sweden's news in English
 
app_header_v3

Google in failed bid for Sweden's Spotify

AFP · 23 Jul 2014, 08:06

Published: 23 Jul 2014 08:06 GMT+02:00

The Journal cited an unnamed source as saying that Sweden-based Spotify was asking for more than $10 billion, despite being valued at about $4 billion in its latest round of equity funding.

Spotify is the world's leading service for streaming music on the Internet, claiming 40 million users in 56 countries as of May.

While the bulk of Spotify users opt for advertising support versions of the service, the company reports having 10 million subscribers to an ad-free option.

In a letter filed late last year with regulators at the US Securities and Exchange Commission, California-based Google said that it planned on spending $20 billion to $30 billion acquiring companies or technology abroad.

Google also revealed that it had recently looked into buying a foreign company, which it did not name, for from $4 billion to $5 billion but that the deal did not work out.

Google has its own music service at its Play online shop and after failing in its bid for Spotify, turned its affections towards startup Songza.

Songza is a free online streaming music service that recommends tunes based on what people might be in the mood to hear.

Financial terms of the deal disclosed early in July were not disclosed, but unconfirmed online reports valued the deal at around $15 million.

Songza suggests playlists based on where people are and what they are doing, such as starting a day at home; grinding away at an office, or out exercising.

It has applications tailored for mobile devices powered by Apple or Google-backed Android software.

Songza features that have resonated with users will be woven into Google Play Music and YouTube where possible, the California-based technology titan said in a post at its Google+ social network.

New York-based Songza has been likened to Spotify-rival Pandora, which has a leading ad-supported streaming music model.

Google, Amazon and Apple have music services that compete in a market where Pandora and Spotify have found success.

Story continues below…

Apple in May bought Beats Music and Beats Electronics in a deal worth $3 billion to bolster its position in the hotly contested online music sector.

Apple executives said Tuesday that the Beats buy should be completed by the end of September. Beats reportedly has several hundred thousand paying subscribers.

The move is expected to help the iPhone, iPad and iPod maker -- a pioneer in digital music with its wildly popular iTunes platform -- ramp up its efforts to counter the successful models of streaming services like Pandora, Spotify and others.

For more news from Sweden, join us on Facebook and Twitter.

Your comments about this article

Today's headlines
Coeliac disease not caused by early weaning: Swedish study
Carin Andrén Aronsson now plans to investigate why Sweden has such high levels of coeliac disease. Photo: Polarbrod

Mothers who stop breastfeeding early are not to blame for their children developing gluten intolerance, a new Swedish study has found.

Zlatan look-a-like storms pitch as Man U take on champions
A grinning Zlatan pushed the man away with the palm of his hand. Photo: YouTube

Zlatan fever has hit the UK, with a look-a-like storming the pitch on Saturday only to be palmed off by the grinning Swedish football star.

Russian Sweden Democrat aide resigns over suspect deal
'Egor Putilov' had access to all areas of the Swedish parliament: Photo: Riksdag

A Russian-born political secretary for the Sweden Democrats has resigned after making six million kronor ($0.7m) in a property deal with a St Petersburg businessman.

Trump an 'embarrassment' Springsteen tells Sweden
Bruce Springsteen tells SVT talk show host that Trump is an 'embarrassment' to the US. Photo: SVT/Youtube

Rock legend Bruce Springsteen has described Donald Trump as an embarrassment to the United States, in an interview on Sweden's Skavlan talk show.

'World class' developer told to leave Sweden over admin slip
Software developer Tayyab Shabab. Photo: Private

Tayyab Shabab has a house, a job and pays tax in Sweden, but he has now been told he must leave within three weeks.

Police release men held over bomb threat on refugee home
Police officers outside the building. Photo: Robert Nyholm/TT

UPDATED: Two men arrested after a bomb threat was made against a home for refugees in Boden, northern Sweden, have been allowed to leave custody.

Embassy: No-go zones 'do not exist in Sweden'
Police on the Serbian-Hungarian border. Photo: Sofia Eriksson/TT

Sweden's embassy in Budapest has sharply rebuked Hungary after an official leaflet claimed that Stockholm and other European cities had become "no-go areas".

The Local List
Ten reasons why it's awesome being knocked up in Sweden
Being pregnant in Sweden can be pretty great. Photo: Jessica Gow/TT

US writer Lisa Ferland shares her top reasons why she thinks Sweden is wonderful for expecting mums.

The Local Recipe
Welcome in the autumn with this Swedish tiger cake
Tiger cake and coffee, the perfect combination. Photo: John Duxbury/Swedish Food

Fika: the best part of the day. Make this tiger cake and you'll keep everyone very happy.

Four arrested over Gothenburg riots
File photo of a Swedish police officer. Photo: Maja Suslin/TT

Four people have been arrested in connection with riots in a Gothenburg suburb this week.

Sponsored Article
Let's Talk: a personal Swedish language tutor in your pocket
National
Muslim teacher leaves job after not shaking male colleague's hand
Sponsored Article
‘I view the world in a different way now’
Travel
Why we adore autumn in Sweden
Gallery
People-watching: September 21st
Blog updates

7 September

Svensk or svenska? (The Swedish Teacher) »

"Hejsan! My inbox is full of questions :-). Here’s one about when to use “svensk” and…" READ »

 

23 August

A Summer in Sweden (The Diplomatic Dispatch) »

"For our first year here in Sweden we decided to have all our holidays in Sweden.…" READ »

 
 
 
Sponsored Article
'Creating a sense of home': Collective living in Stockholm
National
Stockholmers hunt killer badger after attack on neighbourhood hipster cat
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
The Local Voices
Why this Russian developer is committed to helping refugees - with tech
National
Six key points in Sweden's budget plan
The Local Voices
How a Swedish name finally made recruiters notice this Iranian's CV
Sponsored Article
Gran Canaria: 'So much more than beaches'
Gallery
Property of the week: Luleå
Sponsored Article
Why Jordan is the ‘Different’ East
Gallery
People-watching: September 16th-18th
Culture
Why Swedish TV has given these kids' trucks a sex swap
Sponsored Article
How to vote absentee from abroad in the US elections
National
TIMELINE: Everything you need to know about the Julian Assange case
Sponsored Article
Why Jordan is the ‘Different’ East
Gallery
People-watching: September 14th
Politics
Why Sweden is putting troops on holiday dream island Gotland
Sponsored Article
Retiring abroad: ensuring your health is covered
The Local Voices
'What I mean when I say: I came here to blow myself up'
Sponsored Article
'There was no future for me in Turkey'
Society
VIDEO: Are Swedes that unfriendly?
Sponsored Article
7 reasons you should join Sweden’s ’a-kassa’
Features
INTERVIEW: How Arthur the jungle dog opened hearts and minds
Gallery
Property of the week: Smögen, Västra Götaland
Society
Sweden's ancient forest tongue Elfdalian fights for survival
National
Where Sweden's foreigners are from
Gallery
People-watching: September 9th-11th
The Local Voices
Shakib, 23, works and pays taxes — but will Sweden let him stay?
National
Watch this Swede roll his kayak without spilling his beer. Respect.
Gallery
People-watching: September 7th
The Local Voices
'Swedes are polarized on refugees - it's the welcome mat or the exit door'
National
WATCH: Yes, this Swedish rising star really is Abba legend's grandson
The Local Voices
'Whenever I apply for jobs I’m treated like an unwanted stranger'
The Local Voices
Is Swedish bosses' ignorance keeping refugees out of jobs?
2,966
jobs available