This could be a massive development for streaming, music discovery, and dance culture itself. SoundCloud’s path to monetization has been less than clear, in spite of finally locking in all its major label deals this year and launching its overdue subscription service shortly thereafter. However, help might be at hand with news the company is in talks to sell to streaming leader Spotify .
Financial Times reported yesterday that Spotify is already “in advanced talks to acquire SoundCloud,” with the paper citing sources who had been briefed in the discussions.
This follows other reports this year that SoundCloud’s founders and investors were exploring strategic options for the company, with Bloomberg reporting in July that a sale that would value the company at $1 billion was one of the options on the table.
While both companies declined to comment on the report, Billboard speculated yesterday that it’s a purchase that Spotify cannot by any means afford.
“In January Spotify raised $1 billion in convertible debt, the terms of which all but require the company to issue an IPO within the next year, or suffer under the weight of unsustainable financial penalties,” Billboard writes.
“Spotify will have plenty of cash after that initial offering, but until Daniel Ek rings that bell, his company may stay away from gigantic purchases like this.”
