Twitter are investing a giant amount of money into music streaming site SoundCloud, and they just gave them the largest piece.
As part of an investment that sources say will total around $100 million, Twitter just invested $70 million into SoundCloud. The new funding puts SoundCloud’s value at about $700 million, the same value it was predicted to be worth in 2014 before raising a debt round.
Back in 2014 Twitter were in talks to buy SoundCloud outright however talks fell through and the purchase was forgotten. Since then the companies haven’t been strangers, with the introduction of SoundCloud audio cards on Twitter allowing you to play music through the social website.
Twitter’s CEO Jack Dorsey wouldn’t go into detail on their investment into SoundCloud but confirmed it, saying: “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.”
A statement from SoundCloud on their new funding read:
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. 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.
SoundCloud Go is SoundCloud’s recently launched subscription service that lets users listen to music on their site without ads, save music for offline, and gain access to an extended music catalog for $9.99/£9.99 a month. SoundCloud Go is currently available in North America, France, Ireland, and the UK.
It’s unclear yet whether this deal is part of a larger planned partnership between the two companies or whether it just earns Twitter a stake in the company. Given their history I think it’s safe to assume that this investment could result in future endeavours together for the companies, though what that could be will have to be seen.