Google and Spotisfy at $10 billion - not a marriage made in heaven

Google turns down investment opportunity in Spotisfy... and you can see why... If Google charged users $10 per month it would take 8 years to recover the initial investment... Google would be hoping for bigger growth. It also appears that Larry Page is not a big fan of subscription services.

Spotify was said to be asking about $10 billion from Google, which is a bit much considering their $4 billion valuation. That $10 billion represents about $1,000 for every paying Spotify user. There are roughly 30 million using Spotify’s free service.

New YouTube head Susan Wojcicki is said to have been wildly enthusiastic about snapping up Spotify. In December, Google notified the SEC they were looking to acquire a foreign company with a $4-5 billion valuation. That deal never manifested, but it lines up nicely with this report.

Also the Guardian covers the reasons for the deal may or may not work Spotify: seven reasons why Google might buy the streaming music service And a few why it might not, despite rumours that internet giant is in the frame for $10bn acquisition