Spotify, a Swedish music-streaming company will soon acquire its rival, SoundCloud. The German rival of Spotify can make a sale that is valued at $1 Billion. The acquisition announcement will be made soon as Spotify is still in "advanced talks" about the deal.
Two of Europe's music-streaming companies are a popular source for music. SoundCloud's unique visitors reached 175 million every month, while Spotify reached 100 million active listeners. SoundCloud is often referred to as the "YouTube for audio" due to its services that are different from Spotify and Apple Music, reported by CNET.
Spotify, a Sweden-based music-streaming company has hit 40 million paying subscribers in a week, according to Financial Times. Spotify is hitting the market by boosting its diversity on content through podcasts and videos and the subscriber's base. The company may be trying to extend its significant lead in online music, Rich Greenfield, a BTIG Research analyst said in a statement.
The German music-streaming provider, SoundCloud, has already launched a premium Go tier, similar to Spotify, that kills ads in comparison to the free version. The ad-free streaming with increased access to songs amounts to $10 a month. SoundCloud's different service lets its users upload their own tracks. The music catalog contains more than 125 million tracks.
The popular German-based company is now working on finding a buyer, however, having trouble with the value that amounts to $1 Billion. Soundcloud's founders and investors started exploring options for the music-streaming company that will lead to a sale, reported by Bloomberg.
The music-streaming provider, SoundCloud has raised $100 million in June from investors that valued to $700 million. One of the investors includes Twitter. The amount of sale is still unclear and the discussion of acquisition may or may not succeed. The music-streaming service provider companies are yet to comment about the said acquisition.
