Twitter Invests $70 Million In SoundCloud

SoundCloud is a platform for musicians and podcasters who want to share audio across devices, websites and social media platforms and achieve maximum impact. Interestingly, two years ago, TWTR had considered acquiring SoundCloud but then backed out of a deal.

“It’s another way for Twitter to dip its toes into the water of more than 140 characters”, says Mr. Siegel.

The tech blog said Twitter Chief Executive Jack Dorsey declined to comment on the specifics of the company’s investment.

Dorsey said that Twitter had worked closely with SoundCloud over the past few years, and added that the investment would “help support some of our efforts with creators”.

The investment will be helpful to both companies in solving their current problems.

Microsoft said Monday it would buy professional networking service LinkedIn for $26.2 billion, prompting speculation that the current mergers and acquisitions wave sweeping the tech industry would reach Twitter.

SoundCloud has just received $70 million out of a $100 million investment from Twitter.

The 10-year-old Twitter is facing stalled user growth and growing competition for quite some time.

SoundCloud was valued at $700 million in a 2013 round led by Institutional Venture Partners and the Chernin Group.

In March, SoundCloud introduced its long-promised subscription service, SoundCloud Go, making a catalog of more than 125 million songs available to people at $10 a month, with a free version supported by advertising.

There is a strong possibility that with this investment, Twitter aims to improve its own platform in a bid to increase user engagement and subscription.

SoundCloud has gone the same route as Twitter and not spoke about the deal’s details or expectations though with this story breaking that is likely to change.