Swedish telecom operator TeliaSonera has acquired 1.4% stake in Spotify for $115 million effectively setting Spotify’s valuation around $8.2 billion. The two companies have partnered for more than five years and will focus on areas such as media distribution, customer insights, data analytics and advertising.
“We have a long and great relationship with TeliaSonera and I’m pleased we’re able to take this to the next level together with this strategic partnership”, said Daniel Ek, CEO and Founder, Spotify.
Reports indicate the investment was part of a $526-million fundraising round, allowing Spotify to top $1 billion collected since its creation in 2008.
This deal follows the recent announcement that Apple will be launching a music streaming service expected to compete with Spotify.