Twitter invests $70m in SoundCloud, rather than acquiring it
Twitter has invested $70 million in music service SoundCloud.
According to Re/code, people with knowledge of the deal said the microblogging platform has invested in Berlin-based SoundCloud as part of a funding round which has raised over $100 million for the service.
The funding round is expected to value SoundCloud at roughly $700 million.
Back in 2014, Twitter launched the Audio Cards feature which allowed users to listen to audio files directly on both iOS and Android devices. Audio Cards were created with the help of third-party services -- and SoundCloud happened to be the first partner to sign up.
The microblogging platform has displayed serious interest in SoundCloud in the past. Twitter Music, however, has closed down, and the potential deal was pulled. Investors took a dim look at the deal, and SoundCloud also has its own set of issues -- such as user and artist retention, a lack of licenses and a potential glass ceiling when it came to advertising revenue.
In a statement made to the publication, Twitter CEO Jack Dorsey did not confirm the $70 million figure but did admit Twitter now owns a stake in the music platform.
"Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators," Dorsey said. "They've been great partners of ours over the years and their community-supported approach mirrors ours in many ways."