Twitter Makes Massive Investment in SoundCloud

After a number of attempts by Twitter to buy SoundCloud, Twitter has made a $70 million investment into the music streaming service. A SoundCloud representative stated, “We can confirm that Twitter has made an investment in SoundCloud. Both companies facilitate and inspire contemporary culture to happen in real time while reaching millions of people around the world.”

Sources have confirmed the total investment will be around $100 million, and the value of SoundCloud will be approximately $700 million. The SoundCloud representative continued to say, “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.”

Earlier during the year, SoundCloud reached an agreement with Universal Music Group and Sony, and not long after these agreements had been reached, the streaming service launched SoundCloud Go, a paid subscription service. Twitter’s investment could be a carefully laid out plan to merge SoundCloud into the Twitter platform. Twitter CEO Jack Dorsey said, “Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators. They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”