Twitter prepares bid for SoundCloud

Twitter is set to make another attempt to break into the music market with the potential acquisition of SoundCloud.

Twitter prepares bid for SoundCloud

SoundCloud is a social audio service that allows users to upload their own recordings. It has a variety of uses, ranging from a showcase for up-and-coming bands and established artists, to a repository of audio books, to hosting archived recordings of radio shows such as Desert Island Discs.

Sources close to both companies told Re/code that Twitter is considering a takeover. SoundCloud was valued at $700 million when it announced a $60 million funding round earlier this year, suggesting Twitter may be forced to part with the best part of $1 billion to secure the buyout.

Twitter has already made one bungled attempt to enter the music market. In April 2013, it launched Twitter Music, a service designed to help Twitter users discover music that was popular amongst their followers. However, the service required a subscription to Spotify or Rdio to be truly useful and it quickly died a lonely death, closing after less than a year.

SoundCloud, on the other hand, brings an already established user base that can listen to any of the site’s recordings for free. Last year, the site reported it had 40 million registered users and more than 200 million listeners.

The question hanging over SoundCloud is if it can ever make money. The site offers Pro accounts for users who want to upload several hours of audio, but it hasn’t released figures on how many of those it has sold.

The site also offers so-called “native advertising”, where sponsored content is dropped into users’ audio streams.

SoundCloud has faced criticism for breaking away from its roots as a showcase for upcoming artists, in favour of promoting music from established acts. It could be that Twitter sees the potential for cross-marketing deals with the record labels.

Twitter users share more links from SoundCloud than any other music service, including Spotify, according to an informal study published earlier this year, reported by Gigaom.

Disclaimer: Some pages on this site may include an affiliate link. This does not effect our editorial in any way.

Todays Highlights
How to See Google Search History
how to download photos from google photos