• Spotify Reported to Acquire SoundCloud

    Posted on December 9th, 2016 Echo Brown | 251 comments

    It is reported that music-streaming service Spotify was in “advanced talks” to acquire rival streaming service SoundCloud. However, months of discussions between the two have apparently been fruitless, and Spotify has abandoned its takeover plans, TechCrunch reported Thursday, citing a source within Spotify.

    Spotify feared the acquisition could muddle its plans for going public next year, the unidentified source said. A sales price wasn’t mentioned, but Bloomberg reported in July that SoundCloud’s owners were considering a sale that could value the company at $1 billion.

    The breakdown in negotiations comes amid intensifying competition for streaming-music customers. In the last three years, consumers have shifted from digital downloads to memberships that charge a monthly fee for unlimited access to tens of millions of songs.

    Spotify currently dominates the market with 40 million paying subscribers worldwide, up from 30 million paying subscribers in March, according to market researcher Statista. Apple has been catching up fast, saying earlier this week that had surpassed the 20 million subscriber milestone just 18 months after its launch.

    Soundcloud is a music-hosting service and music publishing tool which allowed musicians to share and distribute their music tracks. SoundCloud uses other social networks to spread music uploaded by its members. Users can place the widget on their own websites or blogs and then SoundCloud will automatically Tweet every track uploaded. Often referred to as the “YouTube for audio,” it differs from services like Spotify and Apple Music by allowing people to upload tracks.

    For downloading music from Spotify or SoundCloud, Leawo Software release the newest music recording software, Leawo Music Recorder for all music lovers. The software helps users record audio and music from computer audio and online music sources like YouTube, AOL Music, Last.fm, etc.

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