Google Mulling Soundcloud Buyout, Say Whispers - As Sony and Universal's Stakes are Revealed
Rumors are circulating that Soundcloud may be looking to sell to Google. After failing to come to an agreement with Spotify, a sale to Google could be the best case scenario.This article originally appeared on Music Business Worldwide
After Spotify spurned the chance to acquire SoundCloud, some assumed the end was nigh for the loss-making streaming platform.
High-level rumors are now beginning to bubble, however, that Google is very interested in snapping up the Berlin-based company – which boasts more than 175m users around the world.
SoundCloud was reportedly hoping to sell for $1bn to Spotify in the second half of 2016.
It’s the same price tag that put off Twitter (now a SC investor) from buying the firm in 2014 – and, lo, it ended up pushing away Daniel Ek’s company too.
(Ek reportedly plumped to spend Spotify’s $1bn convertible debt raise on international expansion and shoring up his business for an IPO attempt later this year.)
More realistically, music biz insiders tell MBW, SoundCloud could now be acquired for somewhere closer to $500m – and Google is said to be the current favorite.