After considering buying the streaming service SoundCloud outright back in 2014, Twitter has instead invested $70 million into the company in the latest investment round. The move certainly looks beneficial for SoundCloud, which had been struggling with pretty massive debt just a few months ago.
Twitter CEO Jack Dorsey has thus far refused to comment, while a spokesperson for SoundCloud issued a boilerplate statement that reads, in part: “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.” The deal could also turn out to be a boon for Twitter, whose own attempts at providing a music service unceremoniously crashed and burned three years ago.
SoundCloud’s investment round is expected to value the company at $700 million, when all’s said and done.
