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LequteMan
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Internet giants, Twitter Inc. has invested $70 million in sound streaming service, SoundCloud Ltd.
The investment is to help the Berlin-based business expand its paid offering. It is also part of a larger financing round expected to amount to about $100 million, valuing the company at about $700 million, according to a person familiar with the situation.
“We can confirm that Twitter has made an investment,” SoundCloud said in an e-mailed statement Wednesday, declining to comment on specifics or the valuation. It added that it will use the money to “continue the global roll-out of many company initiatives such as our recently launched subscription service, SoundCloud Go.”
SoundCloud has recently been under pressure to develop a paid service after it failed to turn its massive, engaged user base into sustainable revenue streams.
SoundCloud, which says it has 175 million monthly users, released the premium service in March and has completed deals with major music labels, as well as publishers and independent labels.
The investment is to help the Berlin-based business expand its paid offering. It is also part of a larger financing round expected to amount to about $100 million, valuing the company at about $700 million, according to a person familiar with the situation.
“We can confirm that Twitter has made an investment,” SoundCloud said in an e-mailed statement Wednesday, declining to comment on specifics or the valuation. It added that it will use the money to “continue the global roll-out of many company initiatives such as our recently launched subscription service, SoundCloud Go.”
SoundCloud has recently been under pressure to develop a paid service after it failed to turn its massive, engaged user base into sustainable revenue streams.
SoundCloud, which says it has 175 million monthly users, released the premium service in March and has completed deals with major music labels, as well as publishers and independent labels.
