A bit of a step down from Spotify’s failed $1 billion acquisition.
Soundcloud is a cult favorite for internet streaming, but hasn’t caught hold like Spotify or Apple Music. An acquisition by one of the streaming music giants seemed inevitable, but late last year Spotify bailed on plans to buy SoundCloud for a reported $1 billion due to the platform’s lack of profitability (among other things). However, SoundCloud may have a new suitor: digital giant Google.
Music Business Worldwide is reporting that SoundCloud has lowered its asking price to $500 million, and the favorite to purchase the platform is none other than Google. It’s unclear what immediate plans Google would have for the platform. The search giant already has a streaming service in Google Play Music, although their subscriber numbers are kept private. SoundCloud has over 175 million users worldwide.
Examining a financial filing from last month, MBW confirmed that several major labels have invested in SoundCloud. According to rough estimates, Universal owns a four percent stake, Sony owns a three percent stake and Warner owners a two percent stake. If SoundCloud sold for the reported $500 million, Universal would get $20 million, Sony would get $15 million and Universal would get $10 million. SOURCE: whatsdahype.com