Twitter has invested $70 million in SoundCloud music streaming service, according to a latest report from Re/code. The micro blogging site was planning to acquire SoundCloud as per a report last year.
The latest round of investment is expected to value SoundCloud at about $700 million. In 2014, Twitter rolled out Audio Cards that lets users listen to music on their timelines via the mobile app. Twitter has launched Twitter Music in 2013 which was closed owing to lack of traction.
Twitter CEO Jack Dorsey told Re/code,
Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators. They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.
A SoundCloud spokesperson told Re/code,
We can confirm that Twitter has made an investment in SoundCloud. 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.
The exact aim for the investment is unclear as of now but hints at a possible partnership between Twitter and SoundCloud.