After a lot of speculation on how Google was going to enter the crowded and competitive field of digital music streaming, the answer now appears to be known. Reports are indicating that Google is finalizing a deal to acquire Spotify for $4.2 billion. A formal announcement should be coming later this week.
“I’m thrilled by this acquisition and the belief that Google has placed in us,” Spotify CEO Daniel Ek offered in a statement. ”While we’ve operated as healthy competitors to this point, I think we always considered joining together to help build the future of music consumption and a place for artists to grow.”
Spotify had previously been given funding through companies such as Goldman Sachs, Kleiner Perkins Caufield & Byers, and Northzone Ventures, along with additional support from billionaires Sean Parker, who helped create Napster, and Li Ka-shing. This investment was estimated to have been more than $200 million.
It will be interesting to see what Spotify’s future is in the coming year. Google has been making plans to add subscription and streaming services for Youtube, which has more content but is more disorganized. Needless to say, today marks a day where the way we access and listen to music will change forever, and there appears to be no “April Fools” about it.
