Twitter has decided to pull out of talks to acquire, Soundcloud.
According to reports, the social network chose to let the exclusivity on talks deadline to pass without reaching an agreement because the numbers simply didn’t add up. The purchasing of the popular German service would have been Twitter’s biggest acquisition, as the messaging service seeks to diversify its revenue stream and stop the slowdown that has gripped user growth. Soundcloud was recently valued at $700 million.
Twitter and Soundcloud had come together once before. In 2012, the two companies came together to offer users Soundcloud, without having to leave Twitter. Users could listen, like and share songs From Soundcloud without leaving the social network. In 2013, Twitter again teamed with Spotify AB, Rdio and Apple Inc.’s iTunes to launch their own app. unfortunately, the app proved dismal and Twitter later pulled it.
Founded in 2007, by Swedish entrepreneurs Alex Ljung and Eric Wahlforss, SoundCloud has expanded to five offices around the world, including London, New York, San Francisco and Sofia, Bulgaria.
Currently, SoundCloud has a comparable to Twitter, with over 250 million users. While big stars like Beyonce have released new material on the service, it is mostly a popular way for musicians and DJs to promote their own music. SoundCloud’s lack of licensing agreements with music labels has proved a major cause of concern.
Twitter had also recently tried to forge a partnership with Dr Dre’s Beats Music. The main aim of the partnership was to promote subscriptions to the music-streaming service. Beats Electronics is rumoured to have been acquired by Apple for $3.2 billion.