Twitter has invested $70 million for a stake in the music streaming service, Soundcloud.
Apparently; Twitter wanted to buy the company last year but walked away at the last minute. According to Recode, the investment is part of a round that should end up in the $100 million-range. 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.
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 recently launched subscription service, SoundCloud Go.
Recode reckons that Twitter might view an integration with SoundCloud as a way to increase growth and engagement, and SoundCloud may look at Twitter as a way to promote its newly launched subscription service, which is crucial to the company’s plans.