Spotify is in advanced talks to acquire the German music streaming service, according to a Financial Times report.
(CCM) — Spotify is close to completing a deal to acquire rival music streaming service SoundCloud in an attempt to ensure that it can fend off competition from Apple Music, according to a report in the Financial Times. SoundCloud, based in Germany, allows musicians to upload their music for fans to listen to and over 100 million tracks have been uploaded so far. In March, the company launched a subscription streaming service called SoundCloud Go, but it has not revealed how many people have signed up to it. SoundCloud is backed by high profile investors, including Twitter, and was last valued at about $700 million, according to the report.
Spotify has around 40 million subscribers, more than twice as many as Apple's 17 million paying customers. But is likely to face fierce competition in the music streaming space from Apple and Amazon, who can offer their services as "loss leaders" to promote hardware products like Apple's iPhone or Amazon's Echo. Amazon is expected to launch a subscription music streaming service as early as next month, and Apple has long been rumored to be interested in buying Tidal to boost Apple Music's subscriber numbers. "The big question for the streaming market is whether you can be a standalone company," Niklas Zennstrom, co-founder of Skype and defunct music service Rdio, told the Financial Times.
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