Twitter is reportedly considering a buyout deal with SoundCloud to acquire its 250 million subscribers, which could help boost the social media network's market share.
According to re/code, the microblogging service has been struggling to stabilize its market growth. SoundCloud, a free online audio service that allows users to upload, record and share their own tunes, claimed in October 2013 that it has 250 million subscribers and is currently valued at $700 million.
Musicians also use Berlin-based SoundCloud to distribute their tracks, which can be linked to their Twitter and Facebook accounts to promote their music. Users are also allowed to download up to 100 songs free of charge. It's been dubbed as the "YouTube of audio."
Twitter also created its own music app, but decided not to launch it for unknown reasons. The company is still interested in expanding its presence within music creation and distribution, and reportedly regards buying an established platform as a smarter move than creating its own service. Officials are worried that there's no guarantee a whole new feature will successfully draw attention from Twitter's target audience.
SoundCloud agreeing with the buyout deal seems not too far off, as the company has wanted to sell ads with its music streams for a while. The merger will also open doors for SoundCloud to score deals with big music labels.
As for the possible amount of the acquisition deal, it is very unlikely to be cheap based on the $700 million valuation of SoundCloud. If Twitter decides to buy the music service close to that amount, it will be the most expensive acquisition made by the company, second only to a $300 million deal with the ad service MoPub, PCWorld reported.
SoundCloud and Twitter both refused to comment about the rumor.
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