Spotify valued at £2.2 billion in rumoured funding round

Streaming music titan Spotify is allegedly raising a round of funding at a whopping £2.2 billion valuation, according to venture capitalists interviewed by Business Insider.
Spotify's last funding round was in 2011, when it raised more than £63 million at a £630 million valuation. The new round would value the company at close to that of US streaming site Hulu, which was up for sale for £2.5 billion in the middle of 2011 (although a deal was never made).
However, investors are supposedly reluctant to make a deal at that valuation, as Spotify doesn't own the content that its service relies on, and nor does it have exclusivity deals. That issue is entangled with the question of whether Spotify cannibalises traditional music retail revenues -- though the content holders, so far, don't believe that it does. At the MIDEM conference in Cannes back in January 2012, Sony Music Entertainment's Dennis Kooker told an audience: "At this point we don't see any evidence that any one area is significantly cannibalistic to any other," and Universal representatives have made similar statements.
Several companies have passed on an investment in Spotify at the £2.2 billion level, according to Business Insider, but others have expressed interest in a deal. If it takes place, it'll put Spotify up there with the ultra-popular Pandora, which was valued in mid-2011 at £2.6 billion.
Others in the market aren't doing so well, however. Competitor Mog is supposedly being acquired by HTC and Beats Electronics for a mere £8.8 million.

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