Spotify is reportedly in talks over buying SoundCloud

2 months ago

Spotify is in talks to buy rival streaming service SoundCloud, reports claim.

According to the Financial Times the negotiations are already at an advanced stage in a deal that could be worth more than £535 million.

Spotify recently revealed it had reached 100 million users, as well as 40 million paying subscribers – around double that of Apple Music, which has emerged as its biggest rival over the past year, while Amazon’s Prime Music service also continues to grow.

Germany-based SoundCloud has built a loyal following based on social media-style principles, where artists can upload music to share with fans via the SoundCloud platform or by embedding it into other social network posts.

It has become particularly influential in dance music, with remixes and sampling often popular sharing points among users and artists.

Earlier this year SoundCloud announced that it too was launching a paid-for streaming service, with the platform in the position of having never made a profit.

SoundCloud launched in 2007 and, like Spotify, was founded in Sweden – though it is now based in Berlin. The platform also counts Twitter among its investors.

Spotify is looking to maintain its advantage over Apple Music in terms of user numbers, with the streaming music sector becoming increasingly crowded and competitive, and Jay-Z’s Tidal, Google Play Music and Deezer also being among the big names who offer streaming services.