Echo Nest will continue working in its present structure, and locations, and its API will be kept free for developers. Though the amount of the deal is not officially disclosed, TechCrunch says it is around $100 million, most of which will be paid in equities.
Through its Echo Nest acquisition, the Swedish online music giant aims to improve its curation skills as well as its control over global music consumption data. Echo Nest is the leader in music intelligence with a vast data for over 35 million songs already collected and analyzed. Company has provided these data to all its customers, including Spotify, Rdio, MTV, and Beats Music which is actually a direct rival in Spotify’s business segment.
In a press release, Spotify CEO Daniel Ek said they have- been fans of The Echo Nest for a very long time and honoured to have their talented team join Spotify. “We are hyper focused on creating the best user experience and it starts with building the best music intelligence platform on the planet. With The Echo Nest joining Spotify, we will make a big leap forward in our quest to play you the best music possible” he added.
Last November, Stockholm-based internet giant secured $250 million funding, with a total valuation of $4 billion. The company is said to be looking for credit facility for a alleged IPO in the US this year.
Spotify services are available in 55 markets across the world, with more than 24 million active users and over 6 million paying subscribers as of today.