Back in September, it was reported that Spotify was in advanced talks to purchase SoundCloud. Such a merging of the two streaming giants would prove a cataclysmic event in the industry, easily cementing Spotify as the largest streaming player in the game. Now, however, as reported by TechCrunch, it appears Spotify has backed out of the proposed deal.
TechCruch reports: “[Spotify] ultimately walked away because it feared that an acquisition could negatively impact its IPO preparation.”
With the bevy of licensing struggles SoundCloud has faced — not to mention the overwhelmingly negative press it’s received in the past year — it comes as no surprise that Spotify has cold feet. What’s more, the decision to hold off on purchasing SoundCloud seemingly confirms Spotify’s impending IPO, which has long been rumored and looks to finally materialize in 2017.
While an acquisition of SoundCloud has been ruled out in the short term, there’s nothing to say Spotify couldn’t return to the conversation after its rumored IPO in 2017.