Spotify is reportedly set to acquire SoundCloud
The Financial Times is reporting that talks are at an advanced stage
Spotify is reportedly looking to strengthen its grip as the market leading music streaming service with the purchase of SoundCloud.
Rumours that a bid for SoundCloud would be made by Spotify arose last month after founder Daniel Ek revealed a desire to showcase new artists, and now the Financial Times has revealed that the Swedish company is “advanced talks” to acquire the competitor digital music platform.
Negotiations on a fee are ongoing, with Spotify having the $1 billion it raised in convertible debt earlier this year to help fund the deal.
Although SoundCloud currently operates at a loss, it has seen high profile investment from companies such as Twitter. According to industry analyst Mark Mulligan, Spotify, which also operates at a loss, will see the purchase as a necessary step to fend off competition from Apple Music “as it heads toward an initial public offering.”
Spotify currently has 40 million paid subscribers, while Apple Music trails with close to 17 million.
Keep an eye on Mixmag.net for developments in the story.
[Via: BBC]
Patrick Hinton is Mixmag's Digital Intern, follow him on Twitter
Mixmag will use the information you provide to send you the Mixmag newsletter using Mailchimp as our marketing platform. You can change your mind at any time by clicking the unsubscribe link in the footer of any email you receive from us. By clicking sign me up you agree that we may process your information in accordance with our privacy policy. Learn more about Mailchimp's privacy practices here.
