Twitter Invests $70M in SoundCloud

By Andrew Bindelglass June 16, 2016

Twitter announced earlier this week that is has invested 70 million dollars in SoundCloud, the music streaming service, through its Twitter Ventures investing arm. Based on a recent valuation that placed SoundCloud’s worth at 700 million dollars, Twitter’s purchase is worth ten percent.

This is not the first time that these two entities have been involved in business talks. Twitter gave serious thought two years ago to acquiring SoundCloud in its entirety, when the service was still in its fledgling stages. However, the deal never came to fruition. Now that SoundCloud has showed continued growth and popularity, however, Twitter has deemed it worthy of substantial investment and perhaps a strategic partnership.

“Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators,” Twitter CEO Jack Dorsey said. “They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”

SoundCloud hosts a wealth of user-generated songs, podcasts, audiobooks, etc. Much like Twitter, it relies on its own users to generate content; they are merely the repository for that content and provide a means to view it. As SoundCloud said in a statement, “Both companies facilitate and inspire contemporary culture to happen in real time.”

It seems that SoundCloud sees much of the benefit in this partnership with Twitter in the rollout of their new subscription service that is meant to serve as the company’s main revenue stream. “This investment will enable SoundCloud to remain focused on building value for creators and listeners alike, and to continue the global rollout of many company initiatives such as our recently launched subscription service, SoundCloud Go.”

A partnership between Twitter and SoundCloud would be a mutually beneficial one, as it gives Twitter access to even more shareable and easily engage-able content while giving SoundCloud a better vehicle for promoting said content. 




Edited by Stefania Viscusi

Contributing Writer

SHARE THIS ARTICLE
Related Articles

Bloomberg BETA: Models Are Key to Machine Intelligence

By: Paula Bernier    4/19/2018

James Cham, partner at seed fund Bloomberg BETA, was at Cisco Collaboration Summit today talking about the importance of models to the future of machi…

Read More

Get Smart About Influencer Attribution in a Blockchain World

By: Maurice Nagle    4/16/2018

The retail value chain is in for a blockchain-enabled overhaul, with smarter relationships, delivering enhanced transparency across an environment of …

Read More

Facebook Flip-Flopping on GDPR

By: Maurice Nagle    4/12/2018

With GDPR on the horizon, Zuckerberg in Congress testifying and Facebook users questioning loyalty, change is coming. What that change will look like,…

Read More

The Next Phase of Flash Storage and the Mid-Sized Business

By: Joanna Fanuko    4/11/2018

Organizations amass profuse amounts of data these days, ranging from website traffic metrics to online customer surveys. Collectively, AI, IoT and eve…

Read More

Satellite Imaging - Petabytes of Developer, Business Opportunities

By: Doug Mohney    4/11/2018

Hollywood has programmed society into believing satellite imaging as a magic, all-seeing tool, but the real trick is in analysis. Numerous firms are f…

Read More