Spotify is currently working out a deal to purchase SoundCloud, the Financial Times reports. By acquiring the burgeoning streaming platform, Spotify would gain a massive library of content since the young company already has over 125 million songs, and it would also remove a competitor from the streaming music landscape. Earlier this year, SoundCloud launched its own paid service earlier this year.
Being that Bloomberg reported that SoundCloud’s owners were pondering over a $1 billion deal to sell the Berlin-based company, you can expect this buyout to be a steep one. Twitter reportedly invested $70 million in SoundCloud the previous month.
From a strategic perspective, the move would make sense. Spotify has been expanding to include a wider catalog than just albums, and by acquiring SoundCloud it would get a slew of DJ sets, demos and other alternative tunes. The company is hoping that this in turn would give it leverage over Apple Music, Tidal and other services that try to lure you away with artist exclusives.