Report: Twitter Looking Into Purchasing SoundCloud
Twitter’s music recommendation service Twitter Music notoriously sputtered then shuttered after getting off to a fast start, but maybe they’ll have better luck hosting music instead. Re/code is reporting that Twitter is in talks to buy SoundCloud. Earlier this year SoundCloud valued itself at $700 million, which would make it Twitter’s most expensive purchase ever by far; the company acquired mobile ad company MoPub for $300 million last year. The deal makes sense in at least one other way, per Re/code’s report: “Twitter’s users frequently pass along SoundCloud links in their messages; earlier this year, a survey found that Twitter users share SoundCloud links more than any other music service, including Spotify.” Re/code also speculates that this could force SoundCloud to evolve in a manner similar to YouTube, with ads before streams and deals with the major labels surely to come. Ads before SoundCloud streams would suck! But we’ll see what develops.