Home > Latest News > Spotify Loses Interest In SoundCloud Acquisition

Spotify Loses Interest In SoundCloud Acquisition

Spotify is no longer expected to buy SoundCloud, ending advanced talks of a potential acquisition between the two companies that were first reported in September.

The potential deal is no longer on the table due to Spotify’s preparation for an IPO next year, according to reports from both The Financial Times and TechCrunch.

TechCrunch’s source said that Spotify made the decision because “it doesn’t need an additional licensing headache in a potential IPO year.”

The acquisition would have seen one less competitor for Spotify, and the company would have also acquired an extensive music catalogue.

SoundCloud was last valued at US$700 million, with the service last reported to have approximately 175 million monthly active users. This is compared to Spotify’s 100 million users, of which over 40 million are paying customers.

You may also like
Netflix Shares Slip After Missed Q4 Revenue, Subs Up
New Xbox ‘Anaconda’ Coming 2020
Stan Snares Disney Away From Netflix
Yamaha Debuts Multi-Zone Musiccast Streaming Amplifiers For Custom Install
Spotify Reveals Most Streamed Music In Oz