Yesterday Betabeat broke the news that Turntable.fm was being courted by investors for a new round of $5-10 million at a $40 million valuation.
Business Insider’s Alyson Shontell published an “exclusive” later in the day reporting that Turntable had raised exactly $7.5 million at a $37.5 million valuation and that the final investor, beyond the returning group from Stickybits, was set.
That was not what we were hearing from our contacts at Turntable, which is why we wrote the funding was still in flux. This afternoon founder Seth Goldstein wrote Betabeat to confirm that they have not closed a new funding round.
Ok, bitching aside, the most interesting part of Schonfeld’s piece was who the final outside bidders are. We had heard that a lone east coast investor was hot on the company. At first we thought perhaps Spark Capital’s Bijan Sabet, who is a frequent spinner on the TT.FM deck. We also heard whispers of Fred Wilson, who Schonfeld reports is indeed the interested party.
It gets better! Mr. Wilson is apparently engaged in a bidding war over Turntable.fm with West Coast heavies Kleiner Perkins and Accel. These billion dollar behemoths are apparently willing to pay more than Mr. Wilson, who offered at a $25 million valuation, but USV still has the home town advantage and Mr. Wilson can claim to be a regular user of the service.
So who will it be Doerr or the dog fooder? Accel and Kleiner both have very deep ties with Facebook, which has a lot of leverage over Turntable.fm. USV on the other hand, is tied more deeply to Twitter and Tumblr, which have been key in the viral growth of Turntable.fm. With Facebook poised to launch its own streaming music service (vibes? Carles?), it would seem like there is potential for a conflict of interest with Kleiner or Accel.
Stay tuned to Betabeat, and in the meantime, check out our EXCLUSIVE coverage of the world’s first IRL Turntable.fm party.