Spotify abandons 'advanced talks' to buy SoundCloud - report

News Broadband Global 9 DEC 2016
Spotify abandons 'advanced talks' to buy SoundCloud - report
Spotify has dropped its attempt to acquire music streaming rival SoundCloud after months of discussions, according to unnamed sources cited by TechCrunch. The news comes after the Financial Times reported in September that Spotify was in "advanced talks" to buy SoundCloud, which was valued at USD 700 million after raising USD 100 million in a June funding round, although Bloomberg reported in July that SoundCloud's owners were seeking a buyer willing to pay up to USD 1 billion. Spotify eventually decided to call off the talks because it feared an additional licensing headache in a potential IPO year, according to TechCrunch. 

Spotify currently has around 40 million paying subscribers worldwide, up from 30 million in March. The company’s co-founder Martin Lorentzon stepped down as chairman in October, with chief executive Daniel Ek taking his place, the latest in a series of moves suggesting an expected flotation in 2017.

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Internet,  Mobile

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Spotify

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Global

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Digital Music, Financial funding, M&A buyouts & divestments

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