If this deal goes through then it will mean that Google will become and even stronger player in the growing music streaming landscape.
Last month, Spotify turned down a deal to buy the struggling music streaming company, but it appears a giant company like Google is interested in acquiring the Berlin-based startup. Google has offered to buy the company for a cool $500 million, Music Business Worldwide reported. This is half the price that Spotify offered to buy the company for before bailing for the deal could finalized. Google is now the hot favorite to acquire the company, and given its strong footprint in the music streaming business (Google Play Music), this acquisition could signaled whats to come for the company in 2017.
SoundCloud has grown to become a major player in online music consumption over the last few years and has posted a 43 percent jump in revenue to reach $28 million year-on-year last year. The company has around 175 million users. Google Play Music subscriber numbers are not known, but Spotify and Apple Music dominated the music streaming business last year as more players entered the arena including TIDAL and Amazon Prime Music.
Several major labels also owned shared in SoundCloud including Universal Music Group, Sony Music, and Warner who owns four, three and two percent respectively.