Will Twitter (TWTR) Benefit From SoundCloud Acquisition?
Zacks Investment Research | Sep 28, 2016 11:29PM ET
Per media reports,Twitter Inc (NYSE:TWTR) might gain from the sale of music service company SoundCloud. In Jun 2016, Twitter bought a stake in the company worth $70 million.
Currently, rumors of Spotify holding talks to acquire SoundCloud are doing the rounds. Spotify is one of the biggest on demand streaming services with over 100 million active subscribers and 30 million paid subscribers. With the presence of Apple Inc. (NASDAQ:AAPL) , Amazon.com Inc (NASDAQ:AMZN) and Pandora Media Inc (NYSE:P) , competition is heating up in the streaming service arena. Analysts observe that snapping up SoundCloud is a good move on part of Spotify as it will give it access to its vast library of 125 million songs.
The buyout of SoundCloud may also benefit Twitter. Reportedly, if SoundCloud is sold for more than its current $700 million valuation, then Twitter stands to benefit on account of its $70 million investment in the streaming company.
Recently, Twitter has been in the limelight given the variety of names springing up as its Zacks Investment Research
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