Two years ago, Twitter wanted to buy SoundCloud. Now it has settled for taking a $70 million stake in the music company as part of what appears to be a strategic partnership that could bring more audio to the social platform.
Twitter has invested $70 million in SoundCloud, both companies have confirmed.
The investment is part of a still open $100 million+ round, sources tell Recode. The round is expected to value SoundCloud at about $700 million.
“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.”
From Twitter CEO Jack Dorsey
“Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators. They've been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”