• Sky News, Tuesday, February 22, 2011 2:31 PM

Spotify -- the U.K.-based music streaming service with U.S. ambitions -- is selling a stake to Silicon Valley investor Kleiner Perkins at a valuation of over $1 billion, Sky News is reporting. "Kleiner Perkins Caufield & Byers ... is paying $50m for a shareholding of just under 5 percent in Spotify," according to Sky News' Mark Kleinman. "I'm told that the firm Kleiner Perkins is investing alongside Digital Sky Technologies Global (DST), the high-profile Russian investor that has also put money into Facebook and Groupon among other leading Internet companies." All told, Spotify could raise $100 million within the week. Famed former Morgan Stanley analyst Mary Meeker, who joined Kleiner late last year, is said to be leading the charge along with William 'Bing' Gordon, the co-founder of Electronic Arts who joined Kleiner Perkins in 2008.

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