It seems that Google might be interested in buying SoundCloud. Earlier, it was rumored that Spotify would be buying them instead. The price tag was originally going to be at a billion dollars, but it was lowered by SoundCloud.
SoundCloud is described as an online audio platform with headquarters in Berlin, Germany. Users from the site typically use SoundCloud to upload, record, and promote their original work. The works include remixes, podcasts, and a whole lot of user-generated content. Think of it as the YouTube of sound. It has been a great avenue for aspiring musicians to find an audience for their own voice.
Spotify, a digital music service that provides subscribers access to songs, apparently did not conclude well with SoundCloud because the two could not settle on a price. Alexander Ljung, the CEO of SoundCloud declined to talk about the Spotify negotiations. However, he does say that the company has an advantage over Spotify and Apple Music because of its unique service of combining a library of songs and a catalog of tracks created by and for young tastemakers. "There are very few music platforms at this tremendous scale. We are one of them," the CEO says.
The Music Business Worldwide says that Google is looking to get their paws on SoundCloud for just $500 million. SoundCloud remains attractive because of its feature to allow its users to upload their music then share the files in public.
In terms of user count, SoundCloud also has the most users in any streaming service available with over 175 millions of users to date.
Let's say the Google sale does push through, three major labels will be swimming in good fortune, as Universal Music Leisure Ltd, Sony Music Entertainment, and Warner Music, Inc. all own stakes. The 500 million USD sale would result into a 45 million USD cut between the three.
