It seems that recently there have been quite a number of large acquisitions taking place in the tech world. We have Facebook snapping up WhatsApp and Oculus VR; Microsoft buying out Nokia’s cellphone division; Apple rumored to be acquiring Beats; and Twitter possibly looking at acquiring SoundCloud.
However as far as the latter rumor is concerned, it seems that it may no longer be the case. According to multiple sources from The Wall Street Journal and German newspaper, Der Spiegel, it seems that Twitter has decided to back out of acquisition talks with SoundCloud, with one source claiming that “the numbers didn’t add up”.
Both Twitter and SoundCloud have declined to comment on the matter, so the official reason remains unknown. However Twitter’s plans to acquire SoundCloud wasn’t a stretch of the imagination. After all we can understand Twitter’s desire to enter the music industry, especially with the rise of streaming platforms like Spotify, Pandora, Beats Music, and iTunes Radio, just to name a few, and also with the recent closure of Twitter’s #Music.
SoundCloud also boasted a user base of 250 million users around the world, which could have potentially be added to Twitter’s own user base. But we guess those might not have been good enough reasons for Twitter to acquire the company which was valued at around $700 million. In any case it seems that for now, the deal appears to be dead, but we’ll keep our eyes peeled for more info.