TWITTER-- Rumors are heating up as news of Twitter looking to purchase Soundcloud, or at least put in a bid to make it happen. Often Soundcloud has been considered the “YouTube of music”, in which users can upload their own music for others to listen to free of charge. This rumor first surfaced through Recode earlier today, Soundcloud was founded and is based out of Berlin, Germany.
This could be a HUGE buy up for Twitter as they are looking to stay competitive in the online market, and more and more social media services are spreading out to other ventures than just communicating with others. The stock market hasn't been so kind to Twitter in the recent months, this is due to the uncertainty in which direction Twitter was going and if it had already peaked as a company. Currently Twitters stock shared are work about $32 a share after opening up later last year at $26, and though that shows an increase in revenue, Twitters stocks at one point were as high as $74.73.
Long have Twitter seemed like the music industry is their main focus in adding more services and opportunities to use Twitter for productivity and leisure. Soundcloud has around 250 million users currently and Twitter would like to incorporate them into their service. How many of those users actually have a Twitter account already is unknown, but even if it is 50% of them, the other 50% would still be a huge boost in numbers for the competing social media service.
More details won't be known until something is submitted to the FCC most likely, as both companies declined to comment on the rumor making it clear they don’t address “rumors”. How much is Soundcloud estimated to be worth? well recent analysts believe the price for Twitter to make the purchase would be around $700 million. Twitters highest purchase of a service/company was of MoPub for $350 million, so at double the price tag it makes sense as to why Twitter is keeping quiet on the matter.
Soundcloud is most likely looking at this deal with an eager opportunity to bolster their ad service. Currently they have a premium service for users, but for the free version there isn't much a revenue source which is usually implemented through various ad techniques.
Jonathan covers Technology & Sports related topics from around the world, whether it’s through his writing or YouTube videos. A Chromebook dual booted with Crouton is his daily tool in getting his work done, and Elementary OS is his favorite Linux desktop to date.
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