Spotify is Reportedly In Talks to Take Over SoundCloud

By Tom Pritchard on at

Here's some interesting news. According to the Financial Times, music streaming giant Spotify is reportedly in advanced negotiations to buy SoundCloud - a service currently valued at around £535 million.

It seems a little bit strange, but it makes sense when you think about it. Spotify is facing increasing competition from companies like Apple and Amazon, who are trying to muscle in on the music streaming business. Not only would purchasing SoundCloud take care of a competing brand, it would also give Spotify a larger library and more features to implement.

SoundCloud's main focus has been letting artists upload their own music to share with fans. If the sale goes through, and Spotify implements that feature for its own services, it could give it a small boost over the competition.

SoundCloud has reportedly been looking for a buyer for some time, and while it hasn't made any profit it does have a number of high-profile investors - including Twitter. Spotify could be exactly what it's been looking for. [BBC News]