Spotify has secured a $250 million investment round led by Technology Crossover Ventures on a valuation “north” of $4 billion, according to a story from the Wall Street Journal. The news affirms, with slight tweaks, rumors from two weeks ago on the same agreement.
While Spotify declined our request for comment, a source with knowledge of the deal said the numbers are “in the right ballpark.”
Spotify is poised to pay out $500 million to rightsholders over the course of 2013 and holds an estimated $400 million in equity and debt. TCV’s investment in the company would seem to bolster the notion that an initial public offering for the company is inevitable given its high valuation and investors such as TCV’s desire for a return on their substantial stakes in the company.
Within the digital media market, Technology Crossover Ventures also retains investments in Electronic Arts, Facebook and Netflix.