Singer Taylor Swift pulled her entire song catalog from Spotify Ltd. after it refused to restrict her new album, “1989,” to its subscription service. Photographer: Kevin Kane/Getty Images for Jingle Ball 2012

Spotify Ltd. is in the process of raising new financing that would value the largest subscription music-streaming service at about $8 billion, according to people familiar with the matter.

That valuation is double what… [Read more on Bloomberg]