Spotify high price scared Google?

Netease Technology News July 23, according to foreign media reports, an informed source revealed that Google had tried to acquire music streaming service Spotify AB late last year.

Negotiations later burst for a number of reasons, including the high demand for Spotify and the lack of enthusiasm for subscription entertainment by Google CEO Larry Page.

According to the source, Susan Wojcicki, a Google executive who took over as YouTube chief in February, is a major backers of Spotify.

Both Spotify and Google declined to comment.

In a letter it sent to the Securities and Exchange Commission in December last year, Google said it had "pursued but has halted a potential deal to buy foreign-owned enterprises, valuing it at between $ 4 billion and $ 5 billion."

Spotify last valued $ 4 billion in equity financing, but insiders said the sale price it sought was well over $ 10 billion.

Tech blog Tech blog Re / code reported Monday that Google is interested in acquiring Spotify.

In May, Apple agreed to acquire Spotify's rival Beats Music and its sister company, headphone maker Beats Electronics, for a total of $ 3 billion, according to people familiar with the matter, saying that Apple was just a subscription to the company's seven-month subscription Music service paid 500 million US dollars, but they pointed out that the price is mainly for the convenience of Apple accounting.

Spotify has more than 10 million paid subscribers worldwide and 30 million free service users. Beats Music only has hundreds of thousands of paid subscribers.

Since the iPod and iTunes were introduced in 2011, music has become a major pillar of some of Apple's ecosystem. Google is trying to catch up with multiple projects, such as subscription service GooglePlay Music All Access. Earlier this month, Google also said it has acquired Songza, a music streaming service, but did not disclose the price.

(Chu Shen)