Startups to Buy #2 — Spotify
Founded in 2008, Spotify quickly turned into one of the world’s top music streaming services. Then again, the company was quick to focus on leveraging social networks like Twitter (TWTR) and Facebook (FB) as well as mobile platforms like Google’s Android and Apple’s (AAPL) iOS.
Just this week, Spotify announced that is has more than 10 million paying subscribers and 40 million monthly active users. With numbers like those, it’s a good bet that the company generates $1 billion-plus in revenues.
GOOG would certainly want to get a bigger share of the growing market for streaming music. And yes, Spotify may be interested in a deal, because the industry is getting more competitive. After all, Apple appears to be in talks to buy Beats, and other mega Internet operators like Amazon (AMZN) are pumping up their efforts. There are also many startups gunning for the opportunity.
Besides, a Spotify IPO could be tough to pull off now that social stocks have been cooling off. Just look at Pandora (P) to see what kind of a roller coaster this kind of stock can be for investors.