Google is mulling an acquisition of Berlin-based music creation and promotion platform SoundCloud, Music Business WorldWide (MBW) reported.
SoundCloud reportedly wanted to sell for $1 billion, an amount that deterred not just Spotify but Twitter as well. It could now be acquired for around $500 million, the report said, adding that SoundCloud hired former Google executive Holly Lim as its first CFO in September last year.
The report also revealed that three major labels – Universal, Sony and Warner, own stakes in SoundCloud.
If SoundCloud was sold for $500 million, these firms would get a cut of around $45 million, MBW said.
Last month, Spotify said the costs and licensing agreements needed to acquire SoundCloud would “slow its path” towards its initial public offering, which is planned for 2017.[related-posts]
Credit: MobileWorldLive | Image Credit: The Country Caller