Twitter has invested $70 million for a stake in the music service, Soundcloud.
Twitter wanted to buy this company last year but walked away at the last minute. According to Recode, this investment is part of a round that should end up in the $100 million-range. The round is expected to value SoundCloud at about $700 million — the same value that investors placed on the company in 2014, when it raised $60 million; since then it has also raised a debt round.
Though Twitter CEO, Jack Dorsey did not divulge the specific details of the investment, he said “Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators. They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”
In a statement, a SoundCloud spokesperson said, “We can confirm that Twitter has made an investment in SoundCloud. Both companies facilitate and inspire contemporary culture to happen in real time while reaching millions of people around the world. This investment will enable SoundCloud to remain focused on building value for creators and listeners alike, and to continue the global rollout of many company initiatives such as our recently launched subscription service, SoundCloud Go.”
Recode reckons that Twitter might view via an integration with SoundCloud as a way to increase growth and engagement, and SoundCloud may look at Twitter as a way to promote its , which is crucial to the company’s plans.
