Streaming giant Spotify’s losses widened to as much as €400m (£345m) last year, according to unconfirmed reports that emerged over the weekend.
The increase in losses is expected to hit Spotify boss Daniel Ek’s plans to list the digital music service on the US stock market later this year.
The company is expected to be valued at between $10bn (£7.7bn) and $13bn. Last month, Spotify was seen as moving closer to its highly anticipated float after sealing a deal with Universal to stream music from artists such as Adele and Lady Gaga.
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This is because clinching the multi-year deal was considered one of the obstacles delaying the company’s float.
“We will be working together to help break new artists and connect new and established artists with a broadening universe of fans in ways that will wow them both. We know that not every album by every artist should be released the same way, and we’ve worked hard with Universal to develop a new, flexible release policy,” said Spotify boss Daniel Ek.
Spotify could not be reached for comment.