. >> that was hans holger albert. spotify is said to raise a billion dollars in debt.debt is a loan that converts into stock in certain scenarios that turn into class a shares. this deal has some toxic terms. >> there is a lot of ipo noise coming from the streaming industry. it seems spotify has also started the clock on their own idea by raising funds that get more costly for the business if it does not sell shares in a year. the streaming company with a presence in about 60 companies has raised $1 billion in convertible debt. perhaps using the instrument rather than using normal fundraising to ensure it does not have to lower its previous valuation, guessing it will be worth more in one years time. it is reported that spotify has signed up to give investors in the debt higher coupon and a juicier discount on share sales if they have to wait longer than 12 months for an ipo. that is a big bet for spotify as they tackle the challenge of apple music and have to pay higher fees to music labels. they arty have 30 million paying subscribers and 100 million that pay -- list

cory: that was deezer ceo hans holger albert. talking with francine lacqua in london. meanwhile, spotify is said to raise $1 billion in debt. that debt is a loan that converts into stock in certain scenarios that turn into class a shares. this deal has some toxic terms. caroline hyde is monitoring that story from london. caroline: there is a lot of ipo noise coming from the streaming industry. with deezer's chief executive saying the french company may revisit the listing after pulling an initial share in october. it seems spotify has also started the clock on their own idea by raising funds that get more costly for the business if it does not sell shares in a year. the streaming company with a presence in about 60 companies has raised $1 billion in convertible debt. perhaps using the instrument rather than using normal fundraising to ensure it does not have to lower its previous valuation, guessing it will be worth more in one years time. it is reported that spotify has signed up to give investors in the debt higher coupon and a juicier discount on share sales if they