Spotify “in talks” to take over rival service SoundCloud

PanARMENIAN.Net - Spotify is reportedly in talks to take over rival service SoundCloud.

As Digital Spy said citing the Financial Times, the companies are currently in advanced negotiations, though a price is unclear at the moment and insiders also suggest that talks could still collapse.

It comes as Spotify faces increasingly heated competition from major rivals Apple Music and Amazon.

Berlin-based SoundCloud is unique in allowing artists to upload their own music and share it across the web, though it has struggled to make a profit since it launched a pay-for-streaming service earlier this year.

Although Spotify made revenue of $2.2 billion over the last year, it has also failed to turn over a profit.

The FT reports that Spotify previously had "reasonably detailed" talks with SoundCloud about a possible takeover last spring, although its asking price broke talks.

Spotify considered the acquisition again after its Twitter investment, although talks once again fell apart.

Rich Greenfield, an analyst with BTIG Research, said: "Spotify buying SoundCloud could be a sign they are trying to extend their significant lead in online music, as Apple, Google and Amazon are gearing up to compete more aggressively in music."

Spotify currently boasts 40 million subscribers, while Apple has acquired 17 million since it launched last year.

This summer, Spotify passed 100 million monthly active users on its music streaming service for the first time, with 30% paying to subscribe to the ad-free version.