You will be redirected back to your article in seconds

Twitter Takes $70 Million Stake in SoundCloud (Report)

Twitter has made a $70 million equity investment in music-streaming service SoundCloud, tech news site Recode reported, citing anonymous sources.

Reps for both companies confirmed that Twitter made an investment in SoundCloud but would not confirm the dollar figure.

Asked for more info, a Twitter spokeswoman referred to CEO Jack Dorsey’s comment on the SoundCloud investment. “Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators,” Dorsey said in a statement provided to Recode. “They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”

SoundCloud, in a statement about the Twitter stake, said, “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.”

Twitter’s investment is part of a funding round in SoundCloud pegged at around $100 million, which would give it a valuation of $700 million, according the Recode report. That’s the same valuation SoundCloud had three years ago when it raised $60 million.

SoundCloud Go, a $9.99 monthly subscription service, aimed at competing with Apple Music, Spotify, Google Play Music and other streaming services, launched this spring. The company has raised $123.32 million to date, including $35 million in debt financing in January, according to Crunchbase. Investors include IVP, Chernin Group, Kleiner Perkins Caufield & Byers, Index Ventures, Union Square Ventures and Doughty Hanson Technology Ventures.

Ahead of its subscription launch, Berlin-based SoundCloud reached a licensing deal with Sony Music Entertainment, following pacts with the other two major music labels, Warner Music Group and Universal Music Group. The company’s service for uploading and sharing songs launched in 2008 — and as the site grew in popularity, it drew the ire of the music biz, as SoundCloud didn’t have licensing agreements with copyright holders.

Meanwhile, Twitter lately has been the subject of takeover speculation, given its relatively sluggish user growth over the last several quarters. On Monday, Microsoft said it will acquire business-networking site LinkedIn for $26.2 billion, fueling chatter that Twitter could be next in line to get snapped up.

More Digital

  • John Carmack John Carmack, Chief Technical

    Oculus CTO John Carmack to Step Down

    One of the driving forces behind Facebook’s virtual reality efforts is leaving his post: Oculus CTO John Carmack announced Wednesday afternoon that he was transitioning to a “consulting CTO” role this week, and devote most of his time to new challenges outside of the company. “I will still have a voice in the development work, [...]

  • Rachel Brill - BR Studio -

    Bleacher Report Taps Epix's Rachel Brill to Head B/R Studio

    Rachel Brill is departing Epix to join WarnerMedia’s Bleacher Report as senior VP and general manager of B/R Studio, the digital sports division’s recently formed original programming arm. As head of B/R Studio, Brill is tasked with building a slate of mid- and long-form content aimed at Bleacher Report’s millennial and Gen Z-skewing audience. She [...]

  • Variety Tastemaker honoree Ayesha Curry

    Ayesha Curry's Impact Ranges From Family to Food to Philanthropy

    Ayesha Curry — wife, mother, restaurateur, author, executive producer and CoverGirl — literally does it all. Receiving Variety’s Inaugural Tastemaker award at the 2019 Napa Valley Film Festival, the entrepreneur is being recognized for her social impact in combining entertainment, philanthropy and her culinary lifestyle. Curry holds her cookbook — her first step toward a [...]

  • Joe Anthony Russo

    Russo Brothers Creating Marvel vs. DC Docu-Series for Quibi

    Anthony and Joseph Russo, who have been key creative members of the Marvel Cinematic Universe, are now bringing a new show to Quibi documenting the decades-long rivalry between Marvel and DC. Quibi, the mobile TV subscription startup founded by Jeffrey Katzenberg, greenlit “Slugfest,” a documentary series executive produced by the Russo Brothers, whose directing credits [...]

  • Nobu Hotel Palo Alto

    High-Tech Flourishes Help Hotels Thrive in Silicon Valley

    To thrive in Silicon Valley, hotels must be up to par, technology-wise. “The Nobu brand marries the east and west to create something entirely new — it’s approachable luxury,” says Andrew Tilley, VP of hotel openings. Nobu Hotel Palo Alto (180 Hamilton Ave., Palo Alto, 650-666-3311, nobuhotels.com) is the latest retreat from chef Nobu Matsuhisa, [...]

  • sirius xm app on phone

    SiriusXM Starts Publishing Daily Videos From Dozens of Shows

    SiriusXM is doubling down on video: The satellite radio service officially announced a new initiative called SiriusXM Video Wednesday, with plans to publish daily videos from dozens of shows to paying subscribers. Some of the SiriusXM hosts you’ll be able to see more from include Kevin Hart, Jenny McCarthy, Joel Osteen, Karen Hunter and Jason [...]

More From Our Brands

Access exclusive content