Spotify Reportedly No Longer in Talks to Buy SoundCloud
An unnamed source cites the streaming giant’s IPO preparation as the reason for the deal not going ahead.
Spotify logo via Wikimedia Commons
Back in September, rumors swirled of streaming giant Spotify's alleged interest in purchasing fellow streaming platform, SoundCloud. Now, TechCruch reports that talks between the two parties are no more.
An unnamed source at Spotify told the publication that the deal went under due to the company's speculated, but not yet confirmed push to go public next year. "It feared that an acquisition could negatively impact its IPO preparation," the source said, who also alluded to any label negotiations (and resulting financial costs) Spotify would have to undertake: "It doesn't need an additional licensing headache in a potential IPO year."
Spotify is currently at the top of the streaming pack, boasting 100 million users, of which 40 million are paying subscribers. Apple Music, by comparison, just surpassed 20 million users as it hit its 18-month mark. Earlier this year, Spotify raised $1 billion in funding, and in October began streaming unofficial remixes as part of a deal made with digital music distributor Dubset.