SoundCloud is looking to stick around for a while (remember Napster (wait), RealPlayer…MySpace?). The music streaming service is getting a $70M investment from Twitter.
Twitter has invested around $70 million in the music service, as part of a round that should end up in the $100 million-range, according to sources familiar with the deal. The round is expected to value SoundCloud at about $700 million — the same value that investors placed on the company in 2014, when it raised $60 million; since then it has also raised a debt round.
Twitter CEO Jack Dorsey wouldn’t comment on the specifics of the company’s investment, but confirmed that Twitter now owns 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 said. “They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”
SoundCloud has confirmed the investment.
Recently, Spotify moved into SoundCloud’s territory by allowing streaming mixes.
Soundcloud formally launched in 2008 and the service is popular with indie and major label artists, as well as fans, for its ease in sharing music and interacting with users.