Spotify is rumoured to be conducting "advanced negotiations" with Soundcloud over a possible takeover, according to the Financial Times. However, Midia analyst Mark Mulligan said that the acquisition is "far from a guaranteed winner" for Spotify as Soundcloud's growth peaked in August 2014 at 175 million monthly active users and has remained the same since. The deal would also give SoundCloud access to Spotify's vast catalogue of music which includes artists such as Taylor Swift, Coldplay, Adele, Bruno Mars, Daft Punk, Kanye West, Rihanna, Katy Perry, Lady Despite revenues of $2.2bn, it is yet to make a profit.
Spotify is rumoured to be conducting "advanced negotiations" with Soundcloud over a possible takeover, according to the Financial Times. However, Midia analyst Mark Mulligan said that the acquisition is "far from a guaranteed winner" for Spotify as Soundcloud's growth peaked in August 2014 at 175 million monthly active users and has remained the same since. Spotify has 40 million subscribers and dominates the music streaming industry but with an imminent IPO, it needs to continue to outpace its main rival, Apple. Despite revenues of $2.2bn, it is yet to make a profit.