Twitter has chipped in $70m of a reported $100m new funding round for
SoundCloud. According to tech-news site Recode, the round values the
music-streaming service at $700m.
“Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators,” said Twitter CEO Jack Dorsey in a statement. “They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”
SoundCloud has also confirmed the news: “Both companies facilitate and
inspire contemporary culture to happen in real time while reaching
millions of people around the world,” said a spokesperson.
It’s only a couple of years since Twitter was rumoured to be buying SoundCloud, although any deal is thought to have been stymied by uncertainty about the latter company’s licensing status.
Having admitted in its last financial results that it needed more funding to continue as a going concern, SoundCloud now has a bit more runway to continue rolling out its Go subscription tier around the world – although note, its valuation appears to have remained flat since its last (non-debt)
funding round in January 2014.