Twitter Inc (TWTR) may be acquiring SoundCloud
Twitter Inc (NYSE:TWTR) may be acquiring SoundCloud, a popular music sharing company, according to sources with Re/code. SoundCloud is a free service that lets users upload and share audio files and is often called the “YouTube for audio.” SoundCloud hit around 250 million users in October 2013. SoundCloud raised $60 million in funding earlier this year, which values the company at about $700 million.
This is not Twitter’s first foray into music. Twitter launched a native app called Twitter Music last year, but it failed to take off. Twitter turned off the app in March. SoundCloud has around the same user base size as Twitter and there may be some overlap, but SoundCloud would give Twitter a way to expand its reach independent of its own core service.
SoundCloud does not have any deals with music labels and some of the songs uploaded on the website violates copyright. Some songs are uploaded by artists and labels directly. Originally, SoundCloud was going to provide music for the Twitter Music app. But Twitter cancelled those plans after music labels complained that SoundCloud did not have licenses.