Could music streaming be headed to Twitter?

There can be no doubt that listening to music and keeping your friends up to speed on social media are two of the most popular functions of the smartphone. 

With this in mind, it is perhaps unsurprising that Twitter could be pursuing a partnership with online music streaming service SoundCloud. 

The social network has invested a massive $70 million (£49.3 million) in SoundCloud as part of a broader deal that could bring the final figure closer to the $100 million range. 

This is expected to increase the value of SoundCloud to an estimated $700 million, according to a report from Recode. This is the same value investors placed on the company back in 2014, when it raised $60 million. An additional debt round has been raised since then. 

It is not clear whether the investment from Twitter indicates the firm is pushing for a bigger strategic partnership. 

However, it would not be the first time the social network has considered taking on a stake in SoundCloud, as it considered buying the business outright two years ago, before walking away from the deal for unspecified reasons. 

A strategic partnership based on the chunk of SoundCloud that Twitter has bought would be logical, as the latter company might see it as a way to increase growth and engagement – encouraging new users to sign up and possibly add exciting new functionality for existing members. 

Chief executive officer of Twitter Jack Dorsey did not comment on the specifics of the investment, but confirmed that his organisation does now own a stake in SoundCloud.

“Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators,” he remarked.

“They've been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”

In a statement, a spokesperson for SoundCloud confirmed the investment and emphasised how much the two internet giants can bring to one another. 

“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.”ADNFCR-2155-ID-801820234-ADNFCR

Written by Mazuma

Mazuma Mobile is the UK's most trusted mobile phone recycling service.

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