Spotify Reportedly Seeking Credit Facility in Step Toward IPO

After a job posting on Spotify's web site last month fueled speculation that the company was moving toward an IPO, it appears that the music streaming service is taking next steps by seeking a credit facility with banks.

 Bloomberg reports that Spotify -- which just yesterday announced that it had acquired ubiquitous music intelligence platform the Echo Nest for reportedly $100 million -- has been working with Goldman Sachs, which is also an investor in the company, according to sources. Spotify, the largest music subscription service in the market (with $538 million in funding according to CrunchBase, as opposed to $56.3 millionfor Pandora Media) and follows social media outlets Facebook and Twitter, both of which sought and received financial packages as they approached their own IPOs in previous years. Pandora, Spotify's biggest rival, saw its IPO rise 146 percent since it went public in 2011.

In light of this new development, Spotify's move to purchase the Echo Nest could be seen by potential investors as a solid "big data" play that reinforces the perception that Spotify is the premiere music streaming service, which now owns one of the preeminent backend data providers for music services. In the acquisition announcement, the Echo Nest also stated that their API, which had been public, would remain so; and today, Beats Music opened up its own API to developers.

Representatives from Spotify and Goldman Sachs declined to comment on the proceedings.