SoundCloud Receives Much Needed Investment From Twitter

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SoundCloud has been given a boost by the third largest social media service on the interwebs. Two years ago, Twitter had made a play at buy SoundCloud, but it eventually backed out from a possible acquisition. Today, the popular social media platform has seemingly changed its mind. Sort of.

This time around, Twitter has put worth $70 million to the struggle music service. All in the total will be around $100 million is what is being revealed from sources close to the situation.

Twitter CEO Jack Dorsey gave a general statement that was few on details. However, did confirm that Twitter has a partial stake in SoundCloud.

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

In a statement, a SoundCloud spokesperson said:

“We can confirm that Twitter has made an investment in SoundCloud. Both companies facilitate and inspire contemporary culture to happen in real time while reaching millions of people around the world. 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.”

SoundCloud value is expected to rise back to about $700 million — the same value that investors placed on the company in 2014. As both companies have struggled as of late, this might be the boost each need with a fruitful partnership of social media and streaming music.

Source: Recode