Reports: Spotify rumoured to acquire SoundCloud

According to initial reports made by The Financial Times, streaming giant Spotify is closing in on the acquisition of Berlin-based audio distribution platform SoundCloud.

Although only speculation at this point, Hypebot has reported the parties are in advanced talks.

TMN reached out to both Spotify and SoundCloud, both declined to comment.

If the rumours were true, a buyout would come as no surprise, considering SoundCloud’s financial circumstances. The company experienced losses of AU$33.5 million in 2013 and AU$57 million in 2014.

In July, there were reports of SoundCloud’s owners and investors looking to sell the company in which they valued at AU$910 million. However, the exact terms of the rumoured buyout agreement with Spotify are unknown.

SoundCloud boasts 175 million users who have access to approximately 125 million tracks. While this number comfortably beats Spotify’s 30 million available tracks, SoundCloud’s 30 million remix tracks substantially beef up their catalogue.

If the reported acquisition is successful, Spotify will stand to inherit SoundCloud’s entire customer base to build on their existing 40 million paying subscribers.

SoundCloud launched a premium service earlier this year that enables customers to gain access to an ad-free service for US$10 a month. It launched in Australia this month.

:: SOUNDCLOUD CO-FOUNDER ALEXANDER LJUNG ON SOUNDCLOUD GO’S AU/NZ LAUNCH