Swedish music streaming service giant Spotify is in “advanced talks” to take over SoundCloud according to the Financial Times, although neither company has commented on the rumours.
While the price Spotify could pay for the service hasn’t been disclosed, it won’t be cheap. Spotify has around 120 million users in total, with around 40 million of those being paying subscribers. Big numbers indeed, but the streaming service isn’t making a profit, which means a buyout of SoundCloud would affect its finances even more.
However, the deal would add a large amount of music, including some exclusive content, which is what streaming services are after at the moment to gain new users.
Apple Music for example has exclusive deals with Drake and Frank Ocean.
SoundCloud’s catalogue would add a predominantly DJ sets and dance music to Spotify, which is what its tried to sell to potential subscribers with a SoundCloud Go service.
SoundCloud Go hasn’t seen a great number of sign ups though, so with interest from streaming giant Spotify and a potentially large sum of money on the table, SoundCloud may find it hard to refuse.