Twitter Reportedly Eyeing Acquisition of SoundCloud
Having recently pulled the plug on its #Music app after just celebrating its one-year anniversary, Twitter is rumored to be getting into the music scene again, this time eying SoundCloud. According to Re/code, both platforms share a similar amount of users, with a high portion of Twitter users also posting SoundCloud songs compared to other social media outlets. Twitter has previously tried to incorporate SoundCloud to its music service but record companies interjected due to licensing agreements. As music streaming is a great way to feed advertisement to users, acquiring SoundCloud would be a beneficial move, albeit pricey move, with SoundCloud priced at $700 million USD – a bigger purchase than the $300 million USD Twitter spent on purchasing MoPub last year, a mobile advertising company which looked to boost Twitter’s audience base.
If the acquisition is successful this would mean Twitter would grow in reach, which would likely put pressure on SoundCloud to settle agreements with big music labels to distribute songs at a cost, as SoundCloud current sits in a gray area similar to YouTube in its early days.
Both companies have currently denied comment. Stay tuned for further news via HYPETRAK.