Is Spotify really acquiring SoundCloud? We’ve reached the part of the rumour cycle where warnings come that even advanced negotiations can break down.
“People I talk to say the talks are more talk and less action — maybe there will be a deal, maybe there won’t,” claimed Recode’s Peter Kafka yesterday.
There is also debate about what price SoundCloud would sell for, and consensus that it’s unlikely to be the $1bn that the streaming service was hoping to be valued at earlier this year. Recode pegs $700m as the desired price, based on SoundCloud’s last funding round.
The Financial Times has been hearing lower figures, though. “People with knowledge of the situation now say the sale price on the table could be as low as $350m to $500m, with signs appearing of SoundCloud’s popularity waning,” it reported.
As with Apple/Tidal, Spotify/SoundCloud – if a deal is to happen – may be a case of the larger company biding its time before swooping at the point the smaller firm’s need for a sale intensifies.