Twitter Invests in Global Online Audio Distribution Platform SoundCloud
Reportedly Twitter has invested in Germany based SoundCloud, which is a global online audio distribution platform and allows the users to record, share, upload, and promote originally-created, sounds. News of Twitter's investment in the audio streaming company comes after two years of a failed buyout effort which would have joined the audio treasury of SoundCloud to the social media platform of Twitter.
For Twitter as well as SoundCloud, times have been difficult. Slow growth of Twitter and SoundCloud's requirement for cash to stay afloat makes the deal sensible for both.
SoundCloud have been putting in efforts to make its monthly $9.99 subscription services more interesting by signing new licensing deals with music labels.
In the competitive market, SounClud has provided many budding artists a platform for self-promotion. However, the popularity somewhat did not get enough success to turn it into cash.
In the mean time Twitter, though not shining too bright on Wall Street has been spending cash via its venture capital arm.
SoundCloud said, "We can confirm that Twitter has made an investment in SoundCloud. Both companies facilitate and inspire contemporary culture to happen in real time while reaching millions of people around the world. 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."