Twitter Reportedly Mulling SoundCloud PurchaseBy: Josh Wolford - May 19, 2014
After failing to create enough interest in their own music app to keep it alive, Twitter is reportedly considering a deal to acquire popular music sharing service SoundCloud.
According to sources familiar with both companies who spoke with ReCode, Twitter is considering the deal, which would likely be the company’s largest to date. Recently, SoundCloud was valued at around $700 million.
You may or may not recall (due to its unpopularity), Twitter’s failed attempt to get into the music discovery game. About a year ago, Twitter launched Twitter Music, a standalone trending music app that allowed users to find new music based on their own Twitter activity and the popular activity of others. People use Twitter to talk about music all the time, so the company figured that they could tap into that interest with their own app.
But it wasn’t meant to be. Twitter Music had some buzz at launch, but quickly faded from the app charts and users’ thoughts. After debating shuttering the app for a while, Twitter finally axed it back in March.
SoundCloud already has a strong and dedicated user base, which Twitter was never able to build for their own app. Twitter has been looking for ways to grow the service, especially after investors expressed concern over their growth strategies following the company’s IPO. For SoundCloud, Twitter gives them access to a sizable network–one that is already successful with native ads.
SoundCloud currently boasts around 250 million users. According to the company, over ten hours of music and other audio is posted to the site every single minute.
Image via SoundCloud, Twitter