Russian investment fund DST Global will invest over $100 million in the European Internet music portal Spotify, TechCrunch website said on Monday, quoting sources familiar with the matter.
Unlike previous DST deals, this will direct investment into the portal's development, the website said.
Spotify raised 83.2 million euros or $113 million in 2009-2010, including investment made in February 2010 by Founders, a fund owned by Facebook President Sean Parker.
The planned investment to develop Spotify will increase the company's value to about $1 billion. Sportify's net losses in 2009 amounted to $26.7 million.
Spotify has created a lightweight software application that allows instant listening to specific tracks or albums, with virtually no buffering delay. Users simply download and then log onto their service enabling on demand streaming of music, the website said.
DST Global has stakes in Facebook, Groupon, and Zynga, a developer of games for social networks. It is also a shareholder of Russia's largest social network Vkontakte, Odnoklassniki and MoiMir@Mail.ru social networks and ICQ messenger.
MOSCOW, February 21 (RIA Novosti)