Twitter Is Mulling Plan to Buy SoundCloud, ‘The YouTube of Music’

SoundCloud has nearly as many monthly active users as the social media website

   
Twitter Is Mulling Plan to Buy SoundCloud, ‘The YouTube of Music’

Twitter (TWTR) is considering a plan to buy SoundCloud, the Berlin-based music company that lets people upload and share audio files, Re/Code reports.

Twitter 300x300 Twitter Is Mulling Plan to Buy SoundCloud, The YouTube of MusicSoundCloud is great for aspiring artists, established artists and hobbyist musicians who want to upload and share their songs and remixes with the world.

As of October 2013, SoundCloud had 250 million monthly users. Earlier this year, SoundCloud was valued at $700 million following a funding round.

It’s not clear exactly why TWTR would buy SoundCloud, but some tech pundits think it’s a smart move.

As Peter Kafka of Re/Code notes, a deal between Twitter and SoundCloud could be good for advertising. A fair amount of SoundCloud links are shared on Twitter. In fact, people share more SoundCloud links on Twitter than any other music service.

Though, it’s worth noting that some of the songs on SoundCloud have been uploaded without the owners’ permission, which could be risky for Twitter. But Twitter might also be interested in increasing its monthly active user base, and turning it into more of a mainstream product.

During Twitter’s latest earnings call, it became clear that the product is not something normal people use oftenTWTR currently has 255 million monthly active users, while SoundCloud had 250 million monthly active users as October 2013.

If Twitter does make a deal with SoundCloud, this would be its second attempt at the music business. Last year, TWTR launched a now-defunct music product with the hopes of getting people to stay longer on the platform.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/twitter-twtr-soundcloud/.

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