While SoundCloud negotiated its major label and publishing deals ahead of the launch of its Go subscription tier, chatter about an acquisition of the company died down. Now it’s back.
Bloomberg reported yesterday that “SoundCloud Ltd.’s owners are considering a sale that could value the German music streaming company at $1 billion” in a story that has the whiff of a strategic leak to drum up interest in exactly that. The story warned that “the deliberations are at an early stage and the company may decide against pursuing a deal” while adding that “the owners have had trouble finding a buyer willing to value the company at $1 billion so far”. We know that SoundCloud was valued at $700m in its last funding round in June, when Twitter piled $70m in to the company. In 2014, Twitter was thought to be mulling an acquisition of SoundCloud before balking at its licensing issues. Perhaps it will return in 2016, even if $1bn is a stretch for the social network as it invests heavily in live video.