Just months after SoundCloud introduced their paid subscription service, the music platform is in-talks to be acquired by Spotify, as reported by the Financial Times.

Spotify is currently leading the streaming market with more than 40 million paid subscribers, with Apple Music as its biggest competitor with 17 million paid subscribers. SoundCloud’s increasing popularity led to the launch of SoundCloud Go, its paid service that unfortunately has not captured more than a few hundred thousand users since its launch in March. Its last public metric, however, painted its total user base at 175 million: an attractive figure regardless of the amount of SoundCloud Go users.

While the discrepancy between paid subscribers is quite apparent, Spotify’s of SoundCloud still comes as a surprising move, though a completely apt one as well. While Spotify continues its dominance in subscribers and catalog size, SoundCloud serves as the ideal platform for emerging artists to upload their own music, remixes, and mixes, tapping into a much broader consumer base. In fact, SoundCloud’s catalog largely outweighs that of its competitors, with 125 million tracks at last count.

Soundcloud was last valued at $700 million. Though neither company has addressed the statement, Financial Times discloses that the acquisition announcement could be underway soon.

H/T: Variety

Tags: soundcloud, spotify

Categories: News