Apple Music. An acquisition by one of the streaming music giants seemed inevitable, but late last year Spotify bailed on plans to buy SoundCloud for a reported $1 billion due to the platform’s lack of profitability (among other things). However, SoundCloud may have a new suitor: digital giant Google.
Music Business Worldwide is reporting that SoundCloud has lowered its asking price to $500 million, and the favorite to purchase the platform is none other than Google. It’s unclear what immediate plans Google would have for the platform. The search giant already has a streaming service in Google Play Music, although their subscriber numbers are kept private. SoundCloud has over 175 million users worldwide.
Examining a financial filing from last month, MBW confirmed that several major labels have invested in SoundCloud. According to rough estimates, Universal owns a four percent stake, Sony owns a three percent stake and Warner owners a two percent stake. If SoundCloud sold for the reported $500 million, Universal would get $20 million, Sony would get $15 million and Universal would get $10 million.