Twitter

Twitter is reportedly looking to acquire SoundCloud in what could be its biggest acquisition to date. According to Re/code, which cites sources familiar with the matter, SoundCloud's 250 million consumer base is a major motivator behind the deal.

Berlin-based SoundCloud received a funding of $60 million earlier this year from Institutional Venture Partners along with The Chernin Group and others, and is valued at $700 million. The latest round of funding was said to facilitate licensing deals with record labels.

The deal would give Twitter a boost in the music segment after its own music discovery app, Twitter Music, failed to gain traction. The connected music service was available on iOS devices before it was eventually pulled, with an Android version not even seeing the light of day. SoundCloud was originally considered to be one of the services that would facilitate music discovery within Twitter Music, but a final deal could not be reached as record labels were wary of the Berlin startup's lack of licensing deals.

An outright acquisition would be a win-win for both companies. Twitter has struggled to grow its user base since it went public last year, with investors clamoring for more revenues from advertising. Acquiring SoundCloud would be an easy way of getting 250 million additional consumers in a single go. The deal would also allow SoundCloud to run ads in its music streams.

Source: Re/code

 
There are 7 comments

Iynkata says:

Nooooooooooooo fu Twitter.... >_>

Posted via Android Central App

ACADM says:

I hope not; it would be nice if some companies could remain independent from a handful of US corps.

Posted via Android Central App

As a musician myself, all i have to say is NOOOOOOOO!!!!!!!!!!!!!!

Evilnut says:

I'm all for choice, that's one of the great things about Android. But why does anyone need another music service? This just seems like a "me too" move destined for mediocrity at best.

Posted via my Nexus 10 using the totally awesome Android Central App

ronnypoo says:

Pls no.

Posted from VZW G2

coraphise says:

Twitter had a music service?

xlDeMoNiClx says:

Twitter needs to stop failing as a social network first.

Posted via Android Central App