Now that it seems Spotify definitely aren’t acquiring SoundCloud it seems like they may have another suitor in the shape of Google.
Rumours from industry insiders suggest that Google may be looking to purchase SoundCloud following last year’s rumoured interest by Spotify. After the $1 billion price tag put off Twitter in 2014 and recently Spotify, SoundCloud have halved their price to appeal to new buyers, with Google reportedly first in line.
According to Music Business Worldwide “music biz insiders” have revealed the news that Google are interested in purchasing SoundCloud for $500 million. Whilst Google have their own streaming service in the shape of Google Play Music, SoundCloud is unique in it’s open platform allowing anyone to upload their music and share it with the world. SoundCloud also has the most users of any streaming services and would give Google an advantage in the industry which is currently dominated by services like Apple Music and Spotify.
Whilst Spotify dominates the music streaming services it still doesn’t make a profit thanks to it’s startup origins, opposed to companies like Google and Apple who have separate sources of income. This likely prevented them from spending out a giant $1 billion to purchase SoundCloud and as the company moves towards a long-awaited IPO they will want to be in the best financial position they can this year.