After acquiring quick Video service Vine, Twitter is setting its sight on the audio sharing site Soundcloud as it continues to expand to newer and diverse verticals. According to a report in Re/Code, the deal, if does go through will be the largest acquisition by Twitter as Soundcloud is valued at about $700 Million. There have been growing concerns about the lack of growth in the number of user base of Twitter and with Soundcloud already boasting a user base of around, 250 Million, the deal makes for a quick fix.
This would not be the first venture into the field of music for Twitter though, having failed with their standalone app called Twitter Music App which barely took off the ground last year. Soundcloud, though, to its credit is often referred to as the Youtube of audio and is one of the most used platforms by both independent artists and famous bands to share their tunes with the audience.
Re/Code went on to analyse that despite having very similar size of user base, and a large segment of them overlapping, it would be interesting for Twitter to expand into areas beyond its core competency, a bit like the Facebook and Instagram deal. While neither of the companies responded to the rumors, it is not beyond the realms of possibility especially as it would give Soundcloud a real shot at selling ads on its music stream thanks to the newly established model by Twitter. To their credit, Soundcloud did introduce an Ad Model last year, but it certainly is not on the same level as that of Twitter which reportedly will generate more than $1 Billion at the end of this year.
It would be interesting to see if this deal does go through or not, and if it does, what changes will it bring to Twitter and Soundcloud in particular.