Report: Twitter thinking of buying SoundCloud


Re/code reports Twitter (TWTR -0.1%) is thinking of buying top music/audio-sharing platform SoundCloud.

Berlin-based SoundCloud likes to call itself "YouTube for audio," and claimed to have 250M listeners as of last October (a base roughly on par with Twitter's). A large chunk of those users rely on SoundCloud's mobile apps.

A recent $60M funding round valued the startup at $700M. Its services are monetized both via ads and subscription services.

An acquisition would come with copyright baggage attached: Twitter once planned to integrate SoundCloud with its (now-abandoned) music service, but backtracked after music labels protested about SoundCloud's lack of licensing deals.

Joining Twitter would give SoundCloud the resources to strike licensing deals, as well as to ramp its audio ad sales. It would also bolster Twitter's attempts to act as a media-sharing/distribution hub (results have been mixed thus far).

If Twitter is looking to pay with equity, a deal might've been a lot cheaper in January.

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Comments (10)
  • MEKhoury
    , contributor
    Comments (403) | Send Message
     
    I love Soundcloud, but I don't know how to feel about this news.
    19 May 2014, 02:16 PM Reply Like
  • Stockbrokers
    , contributor
    Comments (14) | Send Message
     
    So, they have been brainstorming about SoundCloud for more than a year and now they finally decided (they are thinking) to do something about it (maybe). They are really fast...
    19 May 2014, 02:42 PM Reply Like
  • Island_Dweller
    , contributor
    Comments (641) | Send Message
     
    First YouTube - Twitch, now TWTR - Soundcloud. Makes you wonder what other platforms are being targeted.
    19 May 2014, 08:17 PM Reply Like
  • 22643611
    , contributor
    Comments (2099) | Send Message
     
    Look at how few replies to this TWTR article compared to a TWTR article, any TWTR article say a month or two months ago........what does that tell you?
    I know what it tells me.......TWTR is done.
    19 May 2014, 10:04 PM Reply Like
  • Island_Dweller
    , contributor
    Comments (641) | Send Message
     
    A company is done based on the number of article replies on a financial news website? What a brilliant investment strategy.
    19 May 2014, 10:15 PM Reply Like
  • 22643611
    , contributor
    Comments (2099) | Send Message
     
    Well my investment strategy was to short it from $65 on down until earnings.
    Also look at the volume drop since dec. except for spikes mostly on the days of huge sell-offs (and one short squeeze).
    I have said since the lock-up expiration that TWTR would drift sideways with a n
    overall downward trajectory. So far I've been spot-on each step of the way (predicting these moves before they happen - not during or after).
    I would add that in about 50 more days all those who filed k8's to not sell
    will have their shares (quite a few) unlocked and I suspect another drop.

     

    Also, have you ever heard of "investor sentiment"?

     

    But in the end you are correct, I have been brilliant in predicting TWTR's movements.
    Thank you for noticing.
    20 May 2014, 03:30 AM Reply Like
  • 22643611
    , contributor
    Comments (2099) | Send Message
     
    @Island Dweller, speaking of investment strategy here is your post from Feb. 5th: "The stock won't stay down because it's a mobile first kind of stock, and that's what Wall Street wants. You can argue until you're blue in the face using facts, figures, and all sorts of data to support your reason for a serious further drop in the stock, but it's futile.
    Data mining on these social websites with millions of followers as mobile continues to dominate tech is what advertisers want and are willing to pay for.
    Seriously considering picking up some shares in the 40s, if it ever gets there. I won't chase after this move, but it's tempting.
    I expect a pop in the stock from fund managers who are desperate to get in on a stock that's on everyone's lips, much like FB."

     

    Well Island on Feb. 5th TWTR was $65 and the day after this post TWTR dropped about 15 points and basically (except for a short squeeze) continued down from there, in fact while you were touting it going up and posting you would pick some up if it hit $40's (I am assuming you did) I was shorting it down into the $30's from $65. You also posted you would pick some up if dropped to the $30's (I assume you did).

     

    Brilliant!! Perhaps you will have a chance to pick some up in the $20's as well.
    20 May 2014, 03:40 AM Reply Like
  • Island_Dweller
    , contributor
    Comments (641) | Send Message
     
    I appreciate the trouble it took you to look up my previous posts.

     

    First, the wrong call I made on the timing on the stock in no way validates the rather silly claim you made about a company remaining a going concern based on reply activity on a message forum.

     

    Second, the words I used in no way indicate I actually purchased shares, merely that as the stock plunged lower things are getting more interesting i.e. tempting. But I'm sure you have a firm(?) grasp of the English language to have drawn this conclusion and regret posting to the contrary. Just to be safe considering ≠ buying.

     

    I feel as though my wrong call you have so vigilantly exposed has tarnished my 100% all-the-time everyday correctness in calling stock movements, and I should just give up. Well played.
    20 May 2014, 07:54 PM Reply Like
  • 22643611
    , contributor
    Comments (2099) | Send Message
     
    Actually you have made the wrong call with every post you made on TWTR and almost without fail claiming you might pick some up at this point and that point as it tanked whilst you thought it was going to go in the other direction. Yet you claim to never have done so (bought the stock). Fair enough. But with all your foresight and ramblings about how good a sock it is and that fund managers surely will be hoarding it why not buy it?

     

    You can try to sugarcoat it but the bottom line is I have been correct on all my posts on TWTR and you quite the contrary. So it wasn't just one wrong call it was basically all your "calls" on that particular stock. I just chose to post only one which was truly horrid and ridiculous.

     

    And I would add that investor sentiment is a strong indication of a momentum stocks future which as I pointed out is waning significantly.
    20 May 2014, 08:15 PM Reply Like
  • 22643611
    , contributor
    Comments (2099) | Send Message
     
    Btw there is another new SA article on TWTR not buying whatever the music company's name is and not one post after a couple hours.

     

    Like I said, TWTR is done in many ways - at least for now.

     

    Even the usual SA TWTR cheerleaders aren't posting on the latest TWTR articles. They have succumb to reality.
    20 May 2014, 08:30 PM Reply Like
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