Twitter is reportedly in talks to acquire Berlin-based audio sharing site SoundCloud, according to people familiar with the development.
According to Recode, Twitter is considering making an offer, but currently the development can be described as tentative at best. SoundCloud is used by individuals, DJs and bands to upload and share music for free. SoundCloud also provides a paid service to its customers giving them additional features.
While the company has started incorporating native ads its revenue is nothing compared to the $1 billion Twitter generated from advertising last year.
The deal would be a major acquisition for Twitter, which went public last year at $26 a share, before rising to a high of $74.73 and then making a long downward spiral to $32.36, where it currently stands.
Twitter has been attempting to get closer to its music industry and even launched a largely unsuccessful #Music app. SoundCould with its 250 million users would give Twitter the base to boost its user growth.
Both companies have declined to comment, saying that they don’t want to add to the rumors.
Last year, SoundCloud raised $60 million during its fundraising round, valuing the company at $700 million. Twitter has so far paid $350 million to MoPub, which has been its most expensive acquisition so far.
UPI