Media streaming is pushing IT giants to new grounds as acquisitions of various platforms are leaked from time to time. Google's latest foray in audio is the planned acquisition for SoundCloud - which could be good news for the audio streaming company given their reported financial problems for the past years.
Acquisition Price Revealed!
Google could push hard on media streaming this year if the news about its planned acquisition of SoundCloud push through. According to DIY Mag, the search engine giant is interested in getting their hands on the platform to the tune of $500 million. The price tag is reportedly lower than the company values itself but since Spotify's interest on its supposed competitor waned, it's value also dropped.
SoundCloud used to be a powerful competitor to Spotify because of its appeal to indie bands who wanted to explore their sound freely and faster. The subscription based services have helped the company a bit in increasing their revenue but it is not enough to cover their operational costs.
Bid to Evade Bankruptcy?
The news about SoundCloud's rumored acquisition couldn't have come at a better time. According to Digital Music News SoundCloud is on the red for the past few years. Even though their net revenue continues to rise, they still post losses due to company's continued expansion - the number of employees rose which means salaries and other benefits stacked up.
If Google succeeds in the acquisition, it will have an additional arsenal for their users especially those interested in creating music and/or audio. Of course, it also helps to pair YouTube with a service known for offering users the ability to create their music on the fly. The tech giant could brand YouTube as their source for creator videos while take advantage of SoundCloud's app and online presence to attract more musicians to its corner.
