Music streaming service Spotify AB is working with Goldman Sachs Group Inc. on a new round of private fundraising, potentially putting off an initial public stock offering for another year, said people familiar with the matter.

The amount to be raised and the valuation are yet to be settled, these people said. However, the company has expressed a desire to raise about $500 million in financing, and investors have heard talk of valuations north of $7 billion, the people said.

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