Twitter plugs into SoundCloud with $100m deal

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It’s second time lucky for some. After attempting to buy SoundCloud a couple of years ago, Twitter has now invested $70 million (Dh257 million) in the streaming music service.

The social media network is expected to pay a total of $100 million for the Berlin-based company, Re/code reported, quoting people familiar with the deal.

Twitter confirmed the investment, but did not offer financial details.

“Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators,” said Jack Dorsey, chief executive of Twitter. “They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”

SoundCloud, which was founded in 2007 in Stockholm, lets people to upload and share music and other audio files.

“This investment will enable SoundCloud to remain focused on building value for creators and listeners alike, and to continue the global rollout of many company initiatives such as our recently launched subscription service, SoundCloud Go,” the company said in its statement to Re/code.

The acquisition can only help Twitter, which has struggled with growth  in user numbers. The microblogging site’s average monthly active users were 310 million for the first quarter of 2016, up 3 per cent year-over-year and compared to 305 million in previous quarter, according to Reuters.

For SoundCould, which has a worldwide audience of 175 million users, the acquisition could help promote its new subscription service, while helping talent find new audiences.