Google may buy Soundcloud. Think about that for a second. This would mean another music based company being swallowed by a huge corporate.
Music clearly still means big $$$
After Spotify spurned the chance to acquire SoundCloud, some assumed the end was nigh for the loss-making streaming platform.
High-level rumors are now beginning to bubble, however, that Google is very interested in snapping up the Berlin-based company – which boasts more than 175m users around the world.
SoundCloud was reportedly hoping to sell for $1bn to Spotify in the second half of 2016.
It’s the same price tag that put off Twitter (now a SC investor) from buying the firm in 2014 – and, lo, it ended up pushing away Daniel Ek’s company too.
(Ek reportedly plumped to spend Spotify’s $1bn convertible debt raise on international expansion and shoring up his business for an IPO attempt later this year.)
More realistically, music biz insiders tell MBW, SoundCloud could now be acquired for somewhere closer to $500m – and Google is said to be the current favorite.
If a sale to Google happens, all three major labels will get a windfall.
MBW has dug through SoundCloud’s latest financial filing and can confirm Universal, Sony and Warner all own stakes in the business.
If SoundCloud was sold for $500m, the majors would therefore get a cut of around $45m between them.
If SoundCloud does sell to Google, it could be the beginning of a major shake-up in music streaming land in 2017.
As previously covered, Pandora is looking odds-on to get swallowed up by Sirius XM in the coming months.
A tell-tale sign: investment fund UBS Asset Management raised its ownership stake in Pandora by 7.1% in Q3 2016 to 195,983 shares – currently worth $2.5m – a new SEC filing has revealed.
That came after BlackRock Advisors LLC increased its position in Pandora by 1.9% in the second quarter.
BlackRock now owns 1,014,741 shares of Pandora stock – currently valued at $12.85m – after buying an additional 19,044 shares during Q2 2016.
Google May Buy Soundcloud
Source: Resident Adviser