The BBC: Spotify In Discussions To Take Over SoundCloud
September 29, 2016 at 4:20 AM (PT)
A report from the BBC says webcaster SPOTIFY, "is reportedly in talks to take over rival SOUNDCLOUD. The two sides are in advanced negotiations."
SPOTIFY, based in SWEDEN, is in direct competition with PANDORA and APPLE MUSIC. SOUNDCLOUD, based in GERMANY, launched its business by giving artists the ability to upload their music and share it with fans on social media and blogs.
The BBC notes, "It has established the company as an influential player in the music industry, especially in the dance music genre. In MARCH, the company launched a pay-for streaming service similar to the offering from SPOTIFY or APPLE MUSIC," adding, "The firm has failed so far to make a profit, but has TWITTER as its most high-profile investor."
MIDIA analyst MARK MULLIGAN told the BBC, "SOUNDCLOUD has been shopping itself around for some time, while SPOTIFY needs to continue outpacing APPLE as it heads towards an Initial Public Offering."