Online music streaming service Spotify is currently in talks to acquire Soundcloud!
Spotify is currently the leading streaming service in the world with over 40 million paid subscribers. The only other competitor who is trying their best to overcome Spotify are Apple Music. Apple Music currently have around 17 million subscribers but they still have a long way to go before they can think of beating Spotify.
The rumours of acquisition have started because of the failure of Soundcloud’s attempt to make paid subscription a thing for their listeners. The move failed to gather any attention at all and it makes sense for Spotify to remove a competitor out of the race by doing this.
Soundcloud currently has over 125 millions songs, a number which is greater than any of the music streaming services. It has also been the most approachable platform for emerging producers and artists to use as a launchpad for their work. Soundcloud was also last valued at $700 million, which in comparison to Spotify’s net value of $8.5 billion, makes sense for them to take this deal. It also wouldn’t hurt Spotify too much either.
Though neither companies have made any official comment about the acquisition deal, the Financial Times says that an announcement about this deal could be out soon!