Spotify in acquisition talks with Soundcloud
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.