After considering buying the company in 2014, Twitter has now reportedly invested £49M ($70M) into SoundCloud. The move comes after the music streaming company posted losses of over £30m in 2014.
The announcement also brought up a new feature of SoundCloud, a subscription service called Soundcloud Go. Twitter have allegedly agreed an investment that will total around £70m ($100). The final figure is expected to value SoundCloud around $700 million.
Twitter’s CEO Jack Dorsey – pictured below on the right next to Alexander Ljung of SoundCloud – wouldn’t discuss the specifics of the investment, but did confirm that Twitter now owns a stake in it.
He stated, “Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators,” he said. “They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”
In a statement, a SoundCloud spokesperson said, “We can confirm that Twitter has made an investment in SoundCloud. Both companies facilitate and inspire contemporary culture to happen in real time while reaching millions of people around the world.
“This investment will enable SoundCloud to remain focused on building value for creators and listeners alike, and to continue the global rollout of many company initiatives such as our recently launched subscription service, SoundCloud Go.”
We’re interested to see how Soundcloud Go gets on, and what other changes the brands joining will bring to both sites.