Google is Reportedly Considering Buying SoundCloud For Around $500 Million
A new report claims that the streaming platform is reconsidering its price tag after Spotify backed out of negotiations.
Music Business Worldwide reports that Google may be "very interested" in acquiring SoundCloud, citing "high level rumors" of a potential sale.
A previous report claimed that Spotify had backed out of "advanced talks" to acquire Soundcloud, after the streaming company set its price tag at around $1 billion. Now, the Music Business Worldwide report claims that Soundcloud may be willing to sell for closer to $500 million, with Google emerging as the "current favorite" to buy.
The report also includes information on the stake each of the three major record labels hold in SoundCloud, apparently culled from annual financial filings. According to the report's "rough approximation," Universal, Sony, and Warner Music cumulatively own somewhere in the neighborhood of 8% to 9% of the company, and could cash in to the tune of $45 million on a $500 million sale.
Read the full report, via Music Business Worldwide, here.