NEW YORK (TheStreet) --  Music streaming service Spotify has reportedly closed a $526 million round of funding, valuing the company at about $8.5 billion, according to The Wall Street Journal. Part of the funding comes from Swedish telecom operator TeliaSonera, which announced it's investing $115 million in Spotify for a 1.4% stake in the company.

TeliaSonera said in a release that both companies are committing resources, staff and other assets to a joint venture that will work to innovate in areas including media distribution, customer insights, data analytics and advertising.

"We've set-out to create a New Generation Telco where innovation is key to our success," said Johan Dennelind, president and CEO of TeliaSonera in a statement. "Spotify is a great company, loved by customers and with a world class take on innovation. I'm excited to join Spotify's journey as investor and key partner."

According to TeliaSonera, its investment follows more than five years of partnership with Spotify. Daniel Ek, chief executive officer and founder of Spotify said, "We have a long and great relationship with TeliaSonera and I'm pleased we're able to take this to the next level together with this strategic partnership." On its Web site, Spotify claims more than 75 million active users, up from 40 million last year, and over 20 million paying subscribers.

The news comes on the heels of Apple's (AAPL) announcement this week that it will launch its own music streaming service on June 30. Apple Music will debut in over 100 countries for $9.99 a month, with a three-month free trial. It will also offer a family plan for up to six people for $14.99 a month. Apple Music for Apple TV and Google's (GOOGL) YouTube for Artists are expected to become available this fall. Apple says its music service will feature more than 30 million songs, about the same number Spotify says it has in its catalog.

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