Selling and purchasing of big companies continues, after acquisition of Beats Music by Apple and WhatsApp by Facebook, Twitter, the big social network is considering to buy SoundCloud. This could be the biggest acquisition of Twitter till date.
SoundCloud is known by some as YouTube of music. Twitter is considering to buy SoundCloud may be because it wants to enter in the music industry and it has earlier tried this by making its own Music App. But Twitter music failed to gain popularity. It was made available on iOS devices and was pulled back even before releasing for Android. SoundCloud lets anyone upload their music for the World to hear. It has 250 million active users which will be a boom to twitter who seeks to enter in music industry. Twitter itself has 250 million active users.
Last year, SoundCloud raised a $60 million round of funding that valued it at $700 million. So if Twitter buys SoundCloud it will be a very expensive acquisition, its biggest acquisition till now. It will be better for SoundCloud as well because of Twitter’s success at selling ads. SoundCloud will now be able to post ads as well.
To some industry observers, this acquisition is beneficial for both companies. “A deal like this makes sense for Twitter, [because] it gives them a much needed push into media and adds into their business another really interesting and popular publishing platform,” said Gartner analyst Brian Blau.
So what do you think about this acquisition?