Twitter has reportedly been considering acquiring the Berlin-based audio-sharing site SoundCloud.
Sources close to both companies informed online magazine Re/code that a deal was being discussed, but by no means final. Both Twitter and Soundcloud have yet to publicly comment on the rumours.
Update: Germany’s Der Spiegel claims it has learned that Twitter has decided against the SoundCloud acquisition.
Twitter has steadily been increasing its number of acquisitions in recent years. In 2013 the platform bought mobile ad company MoPub for $350 million as it prepared to go public.
Following another round of funding, SoundCloud was estimated at $700 million, which would make SoundCloud the biggest acquisition for Twitter.
SEE ALSO: What’s it like to work for SoundCloud?
Founded in 2007, SoundCloud is a free music uploading and streaming service with more than 200 employees in five global offices in Berlin, London, San Francisco, New York and Sofia.
SoundCloud would not be Twitter’s first venture into the music industry. The social media platform launched its own music app last year, which failed to succeed and has since been axed.
Twitter’s profit for SoundCloud’s users
In considering an acquisition of SoundCloud, Twitter may be searching for a solution to its user growth problems.
Although Twitter’s revenue stream is significantly higher that SoundCloud’s, both tech companies have around 250 million users. According to tech researcher Peter Watts, SoundCloud is the music service with the most links shared on Twitter. At over 42 million tweets, SoundCloud files are tweeted over twice as often as songs on Spotify.
Earlier this year it was speculated that the „YouTube for audio“ service could run into legal problems, as several major labels were reportedly taking action against copyright infringements on SoundCloud platform.
As with Google’s acquisition of YouTube, an company that buys SoundCloud would need to factor in any potential costs that owning a music streaming website like SoundCloud might bring with it. SoundCloud recently told WebMagazin that 12 minutes of new content were uploaded every minute.
Feature image: NEW YORK CITY – November 7: Banner on the New York Stock Exchange marking Twitters initial public offering on November 7, 2013 in New York City, NY. via Shutterstock / copyright: Christopher Penler