Seems like the streaming wars are showing no sign of calming down in 2017, as Google are apparently interested in buying SoundCloud.
According to Music Business Worldwide, the company is hoping to acquire the streaming platform for about $500m, which is half of what SoundCloud have estimated they are worth. Talk about a bargain! Interestingly, SoundCloud hired Holly Lim as its first-ever CFO last September, and guess who she used to work for? Yep, Google. Can it really be a coincidence?
MBW have also revealed that three major record labels – Sony, Warner and Universal – have ownership stakes in SoundCloud, and could stand to make $45m between them if Google was to purchase the platform for the lowered price tag. Not a bad little deal.
Last year Spotify abandoned their plans to buy the streaming platform because, according to TechCrunch, the company were worried that it would harm their plans to be floated on the stock market. They also stated that “there are material uncertainties facing the business.” Since they’re apparently readying themselves to launch on the stock market sometime this year, it already looks like it’s gonna be another busy year in the streaming world…