Spotify has ended talks to acquire SoundCloud, a source familiar with the talks tells TechCrunch.
During previous talks between the two streaming giants, price was the deterrent. This time, Spotify's pending IPO was also reportedly a factor. Spotify reportedly walked away from the table this week because “it doesn’t need an additional licensing headache in a potential IPO year," according to the source.
Future profitability may also be a factor.
SoundCloud is a deeply unprofitable company, though new paid subscriptions are adding positively to their bottom line. By contrast, Spotify could turn a profit as early as next year, according to one of the music streamer's board members and investors.