In the spring of 2019, Google announced the acquisition of the world-renowned swedish music streaming service Spotify. The price of the announced deal was truly astronomical – $ 43.4 billion. The first publication to report on the upcoming deal was the Financial Times. Google believed that the acquisition of the world’s most popular music service with 300 million listeners, of which half are paid subscribers, would provide a significant advantage over its main competitor, Apple Music. This would help promote Google’s own product – Google Play Music. After all, it is Apple’s streaming service that is currently the largest in the United States. Importantly, it is based on a paid subscription, which significantly raises its level of profitability.
The owners of Spotify, in turn, considered the transaction amount to be quite acceptable and were glad that the capitalization of their brainchild had reached this level. Although the reputable agency Bloomberg previously claimed that the market value of the swedish brainchild does not exceed $ 27 million. That is why the publication of the announcement of the deal caused obvious bewilderment among stock brokers and experts of the streaming market.
Music lovers from all over the world were waiting. Especially those who were subscribers to the swedish streaming service. But … the deal for some reason did not take place. The reason for its failure is still not known. Some people think it was just an April joke. Some are convinced that intelligence and possible marketing implications were conducted in this way.
So, YouTube Music continues to be the property of Google. And the registered address of Spotify continues to be Luxembourg. The headquarters of the popular streaming service is located in Stockholm.
Let’s summarize. Spotify and Google will remain as two independent companies in 2021. But at the same time, they have certain areas of cooperation that continue to be supported. In particular, they hold joint promotions to attract new buyers and subscribers.