Twitter is now backing out of talks to acquire SoundCloud.

We had reported that Twitter is considering making a bid to acquire German music service SoundCloud, but now it appears that the social network is no longer interested in a deal.

"Twitter considered buying German music-streaming service SoundCloud, but it has backed out of the talks, according to a person familiar with the matter," the Wall Street Journal reported, citing that "the numbers didn't add up."

According to the Journal's source, Twitter eventually let the deadline pass without arriving at an agreement.

SoundCloud is a service that is viewed as a YouTube for audio where users would upload tracks and share with each other. As such, one initial concern is that the service itself doesn't have licensing agreements with the major record labels when copyrighted materials are streamed. It's unclear if that risk posed an an insurmountable obstacle for Twitter.

Source: WSJ

 

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Twitter no longer mulling SoundCloud acquisition

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