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.
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.