Spotify Sizing Up SoundCloud Acquisition?
Spotify is in advanced talks to acquire SoundCloud, the Financial Times has reported people briefed on the discussions as stating.
The Financial Times has reported that those briefed about the talks have stated it is unclear how much Spotify would pay for SoundCloud, also warning that the discussions could still collapse.
SoundCloud was last valued at about US$700 million, the Financial Times reported.
As competition in the music streaming market heats up, the move could bolster Spotify as it takes on rivals such as Apple Music and ahead of a potential IPO next year.
Spotify now has 40 million paid subscribers, with co-founder and CEO Daniel Ek having recently tweeted “40 is the new 30. Million.”.
As reported by the Financial Times, Apple Music has 17 million subscribers.
There have been a number of developments in the market of late, with Pandora recently launching its Pandora Plus service.
Pandora founder and CEO Tim Westergren had also confirmed that an on-demand option is “coming later this year”.