Spotify is internet the latest company to get swept away in the current dotcom bubble, with streaming music service reportedly involved in a new funding round that values of $ 1 billion (£ 616 m).
The site early digital music is reported searches around 100 m $ in funding from Facebook investor Digital Sky technologies (DST) and Silicon Valley firm Kleiner Perkins, who owns an equity stake in Twitter and FarmVille creator Zynga.
Loss-making Spotify is based to its long-awaited launch of the United States. Online Jukebox hope to build on its rapid European expansion, with around 10 million people use its advertising-funded service free of charge. Fewer than 1 million people pay for Spotify's premium service.
Spotify and DST refused to comment on.
Kleiner Perkins, which has led investment rounds for Amazon and Google, is for the purposes of refusing entry pays $ 50 m for just under 5% of Spotify.
High-profile Russian investor DST, which has poured money into daily deals site Groupon property among other highly esteemed internet startups, is also reported to be involved in the funding round – which would be Spotifys largest to date.
Five-year-old Spotify $ 1 billion (£ 616 m) price tag is the latest in a flurry of sky-high valuations of internet companies, which have given rise to the case of a new goldrush similar to the dotcom bubble of a decade ago.
Facebook frenzy triggered last month with its $ 50bn valuation, and in the last few weeks have been Twitter is said to be worth up to $ 10bn, social-gaming firm Zynga $ 9bn and the Groupon property $ 15bn.
Spotify, meanwhile, has been the talk of its growth in the defeat of its long-delayed expansion in the United States. Four major music labels — Universal Music Group, Sony, EMI and Warner Music Group – has to date been reluctant to seal distribution deals with the online Jukebox due to concerns about its "freemium" business model.
Convert one in ten music fans into paying customers have so far not convinced all four major labels of Spotifys free streaming charm. Earlier this week, it was reported that both EMI and Sony had completed a great deal of U.S. expansion with Spotify, but that Universal-which is the world's largest music label and Warner still was not on board.
The latest audited financial statements with Spotify, for 2009, Show it lost £ 16. 6 m in the United Kingdom on the revenue of £ 11. 3 m.
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