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Twitter have attempted to buy streaming service SoundCloud outright in recent years, but now the social media giant has settled for investing $70 million into the online music machine instead. Sources familiar with the deal have told Recode that Twitter’s total investment will end up at around $100 million and will increase the value of SoundCloud to around $700 million. A representative for SoundCloud told The FADER the following in an email:
“We can confirm that Twitter has made an investment in SoundCloud. Both companies facilitate and inspire contemporary culture to happen in real time while reaching millions of people around the world. This investment will enable SoundCloud to remain focused on building value for creators and listeners alike, and to continue the global rollout of many company initiatives such as our recently launched subscription service, SoundCloud Go.”
Twitter CEO Jack Dorsey also confirmed details of the deal in a statement to Recode:
“Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators. They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”