Spotify in advanced talks to acquire rival music streaming platform SoundCloud
If sources are to be believed, two of the most popular streaming platforms of the present times are now looking at a merger to create a mote stronger single entity. Spotify is said to be in advanced talks with rival music streaming service SoundCloud for a possible acquisition. Details of the transaction are still not known, but if the deal happens the new entity will be able to abate the threat posed by Apple music.
Launched in 2008, Spotify now has a total of 100 million listeners and has just recently hit 40 million paying subscribers per week. On the other hand, Apple Music which was launched last year alongside iOS 9, currently has 17 million subscribers, and counting, with the improved experience on iOS 10.
Though the acquisition deal is in advanced stages, it is still unclear how much the streaming company is willing to pay for SoundCloud’s huge business. The chances though strong, nothing can be said certainly about the deal. SoundCloud has a 200 million strong listener community and over 135 million tracks on its platform. This is exactly what Spotify is seeking for in SoundCloud. SoundCloud is said to be very strrong on the social front. Twitter who recently invested USD 70 million into the venture at a USD 700 million valuation.
Clarifying his intentions for the future on his platform, Spotify chief executive Daniel Ek said in a statement:
“The next decade for us is very much about ensuring that even more of these artists can live on their music, and bringing them together with a new audience. Today our users say ‘introduce me to new music’, [and] what the artists say is ‘help me finding my audience’. Essentially, that’s two sides of the same coin.”