Twitter Invests $70 Million in Music Service SoundCloud

Twitter Inc. recently invested about $70 million in SoundCloud Ltd. to help the Berlin-based music streaming business expand its paid offering.
The investment is part of a larger financing round expected to amount to about $100 million, valuing the company at about $700 million, according to a person familiar with the situation.We can confirm that Twitter has made an investment, SoundCloud said in an e-mailed statement Wednesday, declining to comment on specifics or the valuation.
It said it will use the money to continue the global roll-out of
many company initiatives such as our recently launched subscription
service, SoundCloud Go
While SoundCloud’s massive, engaged user base has tantalized the
recorded music industry for years, it had been under increasing pressure
to develop a paid service after failing to turn its reach into
sustainable revenue streams.
SoundCloud, which says it has 175 million monthly users, released the
premium service in March and has completed deals with major music
labels, as well as publishers and independent labels.
Twitter has previously tried to integrate music into its product and
in 2014 considered buying SoundCloud, people familiar with the situation
said at the time. Twitter has invested in startups including smart
headphones developer Muzik and mobile marketing platform Swirl.

Leave a Reply

Blocking Ads ?

We understand your decision to use an Ad-Blocker, however bringing you all the Tech News in one place takes time and funding. Please whitelist Technonize.com in your Ad-Blocker and Refresh your browser!

Get Access to Scribd Premium Content for FreeRegister