Twitter in Talks to Buy Online Music Firm SoundCloud, Reports Financial Times

Twitter is reportedly planning to acquire music company SoundCloud.

The popular microblogging service is reportedly in talks with SoundCloud, sources familiar with the matter claim. Photo: Hank Mitchell/FlickrHank Mitchell/Flickr

The popular microblogging service is reportedly in talks with SoundCloud, sources familiar with the matter claim. Photo: Hank Mitchell/Flickr

Twitter is reportedly thinking over the possibility of acquiring Berlin-based audio sharing website SoundCloud in attempt to add a music service to its offering, claimed some publications citing people familiar with the matter.

The microblogging service has weighed up deals worth billions of dollars and has also taken into consideration acquisition of music-streaming service Spotify and internet-radio provider Pandora Media Inc, the newspaper.

“SoundCloud is a platform that enables people to upload, record, promote and share their music and other audio files,” Reuters explains.

Twitter has significantly expanded its capabilities to carry multimedia content. A year ago, it bought “We Are Hunted,” a three-person music streaming-startup from Australia.

The German company declined to comment on the issue while Twitter did not immediately respond to an email seeking comment outside regular U.S. business hours.

The news comes a week after Apple announced that it inteded to buy popular headphones maker Beats Electronics and its related streaming music service, Beats Music, for $3 billion.

Apple has confirmed last Wednesday the acquisition of Beats Electronics, the headphone and music streaming service co-founded by Dr. Dre and recording impresario Jimmy Iovine.

“Music is such an important part of all of our lives and holds a special place within our hearts at Apple,” said Tim Cook, Apple’s chief executive. “That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.”

Mr. Iovine added: “I’ve always known in my heart that Beats belonged with Apple. The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”

The Cupertino tech giant is purchasing Beats for $2.6 billion in cash plus another $400 million in equity, marking the company’s biggest-ever acquisition. It comes three weeks after the deal was first rumored, and the initial price was believed to be $3.2bn.

Beats co-founders Jimmy Iovine and Dr. Dre will join Apple as part of the deal, which will likely close by September, Apple said.

Mr. Iovine added: “I’ve always known in my heart that Beats belonged with Apple. The idea when we started the company was inspired by Apple’s unmatched ability to marry culture and technology. Apple’s deep commitment to music fans, artists, songwriters and the music industry is something special.”

Moreover, streaming music service Beats Music also will be part of Apple. With $1.1 billion in revenue last year, Beats is already making money and will boost Apple’s earnings once the new fiscal year begins in October,Apple CEO Tim Cook said in an interview.

“Music is such an important part of Apple’s DNA and always will be,” said Eddy Cue, Apple’s senior vice-president of internet software and services. “The addition of Beats will make our music lineup even better, from free streaming with iTunes Radio to a world-class subscription service in Beats, and of course buying music from the iTunes Store as customers have loved to do for years.”

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