In what could turn out to be one of the biggest acquisitions in the music industry in recent times, music streaming giant Spotify is reportedly in advanced talks to acquire SoundCloud. As reported by Financial Times, the announcement of the mammoth acquisition is poised to be made sooner than later.
While rumors of SoundCloud looking for a $1 billion buyout has been doing the rounds quite some time now, Spotify’s interest is anything but unlikely. The music streaming giant which boasts of 40 million paid users has dominated the space with its extensive catalog, ease of use and cheap service. While their nearest competitor Apple Music stands at $17 million paid users, SoundCloud has been consistent in offering a better environment to bedroom producers and emerging artists as they boast of one of the biggest catalogs which rounds up to 125 million tracks. While the Berlin-based service has also looked in to offer a paid service with the launch of SoundCloud Go, it limits non-paid subscribers to previews of several tracks which are restricted by major labels.
A deal that is ought to have its own pros and cons, both parties are yet to make an official statement. Till further updates surface, stay tuned!
H/T: Your EDM
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