Twitter has invested $70 million in Soundcloud
Twitter has invested $70 million in Soundcloud after an attempt to buy the company two years ago.
They were hoping to purchase the company but walked away from the deal in the end.
In the latest bit of interesting and good news for the social media platform, they now have a playing hand in Soundcloud.
Now one of the world’s most relevant social media sites has invested $70 million in Soundcloud ensuring a stake in the streaming wars.
The Twitter CEO Jack Dorsey did not make a comment on the specifics around the company’s investment. But it’s definitely confirmed that Twitter officially owns a piece of the music streaming site.
“Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators. They have been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”
Soundcloud also confirmed the deal in a statement…
“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.”
What has not yet been specified is whether or not the investment will form part of a strategic partnership. What is possible is that Twitter invested $70 million in Soundcloud in an attempt to garner growth and engagement. While Soundcloud could possibly want to use the vast Twitter platform to promote their subscription service which is an integral big step for the company.
The investment of $70 million in Soundcloud could potentially pay off significantly for both companies to combine forces in this way.
