Spotify don’t want to buy SoundCloud anymore

Back in September, Spotify said that they were in “advanced talks” to buy SoundCloud, with the deal said to be worth £535 million. But new reports suggests the deal has been called off.

Spotify has reportedly given up on its acquisition of SoundCloud because, according to TechCrunch, it was fearful that buying the streaming service would negatively affects its IPO preparation. Essentially, although they haven’t officially announced the plans, Spotify have been thinking about floating themselves on the stock market, preparing an ‘initial public offering’ on the exchange.

Since a recent report claimed that SoundCloud have lost $70 million in two years, the company’s directors have said that “there are material uncertainties facing the business,” and artists such as Four Tet have criticised the platform.

At the time of writing, neither Spotify nor SoundCloud have responded to requests for comment.