The beverage giant is in talks to buy a stake in fast-growing digital music company Spotify, reports Sky News in the U.K. Coke is in discussions about acquiring a share worth about $10m in the online music service, which is in the process of a new financing round for nearly $400 million expected to value the company at $4 billion. Goldman Sachs is reportedly taking the lead in drumming up interest in Spotify, which is in expansion mode. The company is planning to use the cash to build scale and serve its growing subscriber base, sources said.
So, a $10 million investment would give Coca-Cola a minimal stake in Spotify, but it may see marketing and advertising opportunities. In fact, the story noted if the talks do result in a deal, the stake would cement a partnership struck in April through which the two companies collaborate across a series of digital music projects. Under the terms of that deal, Spotify will provide the underlying technology for Coca-Cola’s music platforms around the world.
The discussions are not yet complete but are likely to be in the next few weeks, according to the story.
The drinks company is also integrating Spotify into its Facebook presence and timeline, in an attempt to tap into its Facebook audience of more than 40 million fans.
Spotify, which launched in Britain in October 2008, has more than 15 million active users globally and more than 4 million paying subscribers. That compares to 1.1 million paying subscribers for Pandora.