Spotify In Talks To Acquire SoundCloud by PitchBook
Spotify is in advanced talks to acquire music-streaming service SoundCloud, according to the Financial Times.
Such a deal would be a great outcome for SoundCloud. The company has long been rumored to be burning cash at a high clip, and the premium service it released this year never took off. For Spotify, the deal would provide access to an array of new musical content; SoundCloud has a library of over 125 million tracks, many of which are original content created and uploaded by its users and thus absent from Spotify’s catalog.
An acquisition would surely make SoundCloud’s investors happy, as well, including Kleiner Perkins Caufield & Byers, Union Square Ventures and IVP. The company has raised about $175 million in total since its 2007 founding.
