Twitter is trying to renter the music business with its latest acquisition plans. The micro blogging company’s attempt to venture into music failed miserably with Twitter Music which was killed mere one year after its launch. Now, Twitter is apparently trying to find its way back by acquiring audio sharing company SoundCloud, according to Re/code.
With over 250 million users, SoundCloud is a popular online community for sharing and discovering music. The Germany-based SoundCloud is valued at around $700 million. Twitter and SoundCloud have almost same user base and of this acquisition is done it will help Twitter to increase its user base which has been sluggish for a long time now.
SoundCloud could also use Twitter’s resources to secure big licensing contracts with major music labels. Also, Twitter to earn some ad revenue as its will get a large platform. The report further states that a recent survey found that Twitter users share SoundCloud links more than any other music service, including Spotify.
Source: Re/Code