SoundCloud Close to Partnering with Major Labels

Music streaming superpower SoundCloud is reportedly close to completing a deal with major record labels including Universal Music Group, Sony Music Entertainment and Warner Music Group. According to Bloomberg, the deal will give the labels roughly three to five percent stake in SoundCloud along with royalties based on play counts, and in return SoundCloud would receive licensing rights that would dramatically reduce their chances of getting into legal troubles due to copyright issues. No official statements about the deal from any of the involved parties just yet, but as soon as there is one we will get you updated.