Spotify’s acquisition of SoundCloud reportedly dropped in favor of IPO

One of Spotify’s initial and more positive financial backers is excited for 2017 — the year that the music streaming service may finally post black ink. But will profit motive necessarily stifle its growth mission? One source at Spotify says it might.

TechCrunch was told that the company’s bid to buy out rival service SoundCloud has ended because of the additional paperwork required. Pile that on top of rumors that Spotify is already signing papers away for an IPO and it could’ve ended up too much work to bear.

The economic sense of a SoundCloud deal seems to make less sense at this point, though the cultivation of a more involved and artistic user base would’ve been helpful to stimulate new revenue.

Spotify last reported its user base at 100 million with its paid subscriber pool up to 40 million. Meanwhile, SoundCloud has also improved its earnings standing with the introduction of its subscription service, SoundCloud Go, but remains unprofitable — as has Spotify for its corporate history.

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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.