Spotify is raising money at a $4 billion valuation, reports DealBook

Spotify is raising a ton of money that could potentially value the company at $4 billion, DealBook reports. Spotify’s current valuation is $1 billion, which we learned after the company raised a round of funding in February. While Spotify lost $59 million on $250 million in revenue in 2011, it’s the mindshare leader in the music subscription scene, and shows the most promise of legitimizing subscriptions as a viable model for the music industry. While we haven’t heard too many numbers from nemesis Rdio, another competitor, MOG, was recently acquired by Beats Audio for something in the neighborhood of $14 million — not much compared to Spotify. CEO Daniel Ek revealed to a Swedish newspaper one month ago that despite having millions of free users that pay the company nothing, he expects to do $889 million in revenue for 2012. “The question of when we’ll show a profit actually feels irrelevant,” Ek told the Swedish newspaper. “Our focus is entirely on growth. It is priority one, two, three, four and five.”