Spotify to double funding with billion dollar deal

Tidal may now have three million subscribers, but Spotify boasts 10 times that number...

Spotify to double funding with billion dollar deal

Andrew Matthews / PA

Spotify is set to raise $1 billion (€884 million) in convertible debt, the Wall Street Journal has reported.

The music streaming market leader will look to close the deal with hedge fund Dragoneer Investment Group, private equity firm TPG Capital and other investors by the end of the week, with no terms disclosed.

It would double the amount of finance the company has raised since its inception a decade ago.

Convertible debt allows investors to change their bonds to discounted equity in the future, and these terms could cause the company to go public in the not too distant future.

It also means Spotify's valuation, put at $8.4 billion in 2015, will be unaffected.

Despite facing challenges from the likes of Apple Music, Tidal and now SoundCloud, Spotify remains head and shoulders above the competition in the subscription streaming service market.

Spotify CEO Daniel Ek tweeted last week that his company had passed the 30 million subscriber mark.

Not only that, Spotify gained 10 million in the nine months Apple Music had been on the market. Apple Music currently has approximately 11 million subscribers.

In other streaming news, Tidal announced that it now has over three million subscribers, one year on from its much-derided launch.

Subscriptions reportedly doubled after the exclusive February release of Kanye West's sixth studio album, The Life Of Pablo, on the service. It was streamed over 250 million times in its first 10 days.