Spotify talks to Soundcloud about acquisition

Spotify would be in advanced talks with music service Soundcloud about a takeover. That reports business newspaper Financial Times. It is unknown what an acquisition would mean for users of both music services.

Spotify has not responded to the rumor and Soundcloud could not be reached for comment, writes the Financial Times, which relies on anonymous sources who are aware of the conversations. It is unknown what Spotify wants with the acquisition of the smaller competitor. Soundcloud allows users to upload music and sound clips on its servers to be able to offer and embed them online, but also has a paid streaming service. It is unknown how many users it has. About 40 million people use Spotify’s paid subscription service.

It has been known for some time that Soundcloud is in the shop window. This summer, Bloomberg news agency announced that the founders wanted to sell the service. Soundcloud was hoping for a $1 billion acquisition. A few years ago, a takeover of Soundcloud by Twitter went wrong because of an asking price that was too high, tech site Recode reported some time ago. This year, Twitter did invest in the service.