Spotify has acquired Paris-based artificial intelligence startup Niland, marking the company’s fourth acquisition this year.
Financial terms of the deal were not disclosed.
Niland is engaged in the analysis of audio using deep learning technologies. The startup “has changed the game for how AI technology can optimize music search and recommendation capabilities and shares Spotify’s passion for surfacing the right content to the right user at the right time,” Spotify said in a statement.
Under the terms of the deal, Niland’s technology became part of the Spotify R&D unit and its team will move to Spotify’s office in New York City. The team will “continue innovating and improving our recommendation and personalization technologies resulting in more music discovery which benefits both fans and artists,” the music streaming service said.
On its website, Niland published a short statement, stating that: “We will keep working on new ways to better understand music to craft better innovative listening and discovery experiences.”
“Spotify has changed the music industry and revolutionized music consumption in less than a decade,” artificial intelligence startup said, adding that “Spotify has succeeded at bringing the most innovative products to the music streaming market with products for both fans and artists including Discover Weekly, Release Radar, Spotify for Artists among others.”
Spotify is reportedly considering a direct listing on the New York Stock Exchange later this year or early next year. The music streaming service’s direct listing “would be the biggest test yet for the direct listing process,” according to Reuters.
Spotify is valued at $13 billion. It currently has 50 million subscribers and a 43% growth rate in revenue. A successful direct listing by the company “could change the way companies approach selling shares to the public,” according to Reuters.
Stockholm, Sweden-based Spotify was launched in October 2008. The music service has a freemium business model, offering basic features free with ads and premium features through paid subscriptions.