The world of big investments is always interesting and today is no different. Powerful social media tool Twitter has reportedly invested a whopping $70 million into popular streaming service SoundCloud.
Back in 2014 Twitter tried to purchase SoundCloud outright for $700 million, but the two companies couldn’t come to an agreement. Now two years later, Twitter is only investing 10% of what they originally offered.
Twitter CEO Jack Dorsey refused to give the details of the new deal, but did confirm that Twitter now owns a stake in SoundCloud. “Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators,” he said. “They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”
SoundCloud has made serious efforts to compete with other streaming services such as Apple Music, Spotify, TIDAL, etc. With investments like this, plus their recent launch of SoundCloud Go, they’re right on their way.
What do you think of this investment?