PAYDAY FOR THE MAJORS AS GOOGLE MAY COP SOUNDCLOUD FOR $500MILLION!
Music streaming / sharing platform Soundcloud is hugely popular both among fans and creatives. Upcoming artists use the platform for instant global reach, Dj's use it to upload their mixes and A&R's keep their eyes pealed to discover the latest talent. However, despite its popularity with in excess of 175 Million users Worldwide and a catalogue of over 110 Million tracks, the audio distribution platform trails behind counterparts such as Apple Music and Spotify.
Earlier in the year Soundcloud put itself on the market for $1Billion, with strong hopes to be acquired by Spotify to no avail. With the price tag reduced to half of its initial asking price, it is reported that Google are leading the bid to acquire Soundcloud for $500Million.
If the sale goes ahead this will also mean a nice little payday for Universal , Sony and Warner who are shareholders in Soundcloud. According to financial records obtained by MBW the three majors could enjoy at least a $45Million payout between them. MBW reveals that Universal hold 4%, Sony %3 and Warder 2% in share value.