Spotify in acquisition talks with Soundcloud

Advertisement

Two streaming music services, both never having reported a profit, may end up together in the hopes of turning in black.

According to sources to the Financial Times, Sweden-based Spotify is in “advanced talks” to buy out Soundcloud, headquartered in Germany. The talks supposedly started last spring, but were scuffed for a time due to price negotiations falling apart. We know nothing about money terms this time around, but Soundcloud was most recently valued at $700 million.

This year, Soundcloud introduced a subscription tier service called “Soundcloud Go” and added millions of new tracks to its catalog of over 135 million. The biggest peg that Spotify may look to get is an enclave of artists that have found Soundcloud as a safe haven to create, share, remix and post all of their work at a highly visible site, but for an affordable cost.

Spotify may facilitate that community and combine their desires with its 100 million users’ desire to find new music easily. The company currently has 40 million subscribers, outpacing competitor Apple Music’s paying base of 17 million.

Infinite Loop was reportedly in talks with high-fidelity streaming service Tidal for acquisition. Apple denied those claims.

Source: Financial Times
Via: TechnoBuffalo

Share This Post
Advertisement
What's your reaction?
Love It
0%
Like It
0%
Want It
0%
Had It
0%
Hated It
0%
About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.