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IN Science & Technology ON 30 Sep, 2016
Spotify is planning to acquire SoundCloud. Although, it is unclear that how much Spotify would pay for this acquisition. As SoundCloud raised the funds in June 2016, we can expect a significant turnover between these companies.
Twitter invested $70m in this Berlin-based company. However, SoundCloud raised $100m in June, and the total value is now approx $700m.
SoundCloud provides the cheapest subscription which is the main reason for its popularity. They also provide the ad-free music streaming to their UK consumers.
SoundCloud is one of the finest music websites for musicians and music lovers. It has been proven by checking the visitors on these websites.
Spotify is negotiating to buy SoundCloud, the Financial Times reports. Discussions between the two streaming services were "advanced," according to the FT, which cited "people briefed on the discussions."
"The big question for the streaming market is whether you can be a standalone company in a category when you have companies like Amazon and Apple looking at music as a loss leader, just to sell more iPhones or Echo speakers." Niklas Zennstrom, the co-founder of Skype & now-defunct music service Rdio said.
"With SoundCloud's subscription service, the two services are becoming more similar than they have been before, so a reason (to buy) would be a consolidation of subscriber bases and to combine talent pool," he added.