A little birdie spread the word this week about the possibility of the social networking giant, Twitter buying off SoundCloud, and the whole of Internet was abuzz. Although before the rumours could sizzle up some more, The Wall Street Journal reported this Tuesday stating that Twitter has called off talks to buy soundCloud.
SoundCloud, known to be the ‘Youtube for the audio’ is a private music streaming service from Germany that allows one to update and share audio files. For music artists, music promotion via Twitter and SoundCloud generally go hand in hand, thus justifying the former’s acquisition interests but eventually, as stated by The WSJ, “the numbers didn’t add up” for the same.
SoundCloud raised a funding of 60 million dollars last year owing to its service, that earned it a value of a whopping 700 million dollars! Where as, Twitter’s most expensive purchase up till now has been of the ad network ‘MoPub’ for around 350 million dollars. So even if the deal were to materialize between the two companies, the gains would have been swaying highly towards SoundCloud. However, the spokesperson from both the companies refused to comment on the deal, terming them as only “rumors and speculations”. Unfortunately, this one is a pass for Twitter.
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