Report: Google Is Considering A Purchase Of SoundCloud For $500 Million
Spotify reportedly backed out of negotiations after SoundCloud set its price at $1 billion.
According to a report from Music Business Worldwide, Google seems to be "very interested" in purchasing SoundCloud. The streaming platform has been on the market for a few years now, dating back to 2014 when it valued itself at $1 billion in negotiations with Twitter (who didn't purchase, but were an investor). Last year, SoundCloud sought the same price tag from Spotify, who backed out of negotiations.
In the time since, SoundCloud has significantly lowered its price tag—to $500 million—in its most recent negotiations with Google, according to the report. Music Business Worldwide also points out that three major labels, Universal, Sony, and Warner together own roughly 8-9 percent of the company, and would stand to net somewhere in the neighborhood of $45 million.
The report suggests that the sale of SoundCloud could be just one part of a major shift toward consolidation in the streaming world. In addition to Google's potential acquisition of the platform, Pandora seems likely to get absorbed by Sirius XM in the coming months.