post-image-04

Twitter invest is SoundCloud

After two years of negotiations, SoundCloud and Twitter have finally become one. In 2014, Twitter began weighing the pros and cons of buying SoundCloud, but because of its financial situation and lack of licensing deals with record companies, Twitter quickly backed out. Since then, SoundCloud has struck a wealth of deals with new publishers and record companies, legitimizing it as a conventional music business. 

In 2008, SoundCloud became a much-loved business for both musicians and fans, with a generous 175 million users worldwide. However, major record labels were enraged because of the use of unlicensed content, which sparked copyright liability. This only made the money issues for the hit company worse. With $77 million in debt last year alone, the company stated it would need to raise a substantial amount of money to stay afloat.

This is where Twitter jumped on the sinking ship and pulled it back to shore. Twitter invested a whopping $70 million in the streaming music service, which only makes sense given their common ground in streaming, and the partnership that would bring Twitter new users and SoundCloud financial assistance.

Jack Dorsey, the chief executive for Twitter, confirmed the investment in a statement on Tuesday. “Earlier this year, we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators. They’ve been great partners of ours over the years, and their community-supported approach mirrors ours in many ways.” Though he did not specify the amount, the figure was confirmed by an individual who had been briefed on the deal. 

Entertainment

What's Featured

Editor's Pick

Intact Insurance turns a profit despite Fort McMurray fire losses

Intact Insurance turns a profit despite Fort McMurray fire losses

The largest casualty and property insurer in Canada, Intact Insurance Corporation, has declared a profit in spite of the Fort McMurray fire losses. The second–quarter profit was greater than anticipated even as the corporation faced the effects of the devastating wildfire. The fire in Northern…

Twitter invest is SoundCloud

Twitter invest is SoundCloud

After two years of negotiations, SoundCloud and Twitter have finally become one. In 2014, Twitter began weighing the pros and cons of buying SoundCloud, but because of its financial situation and lack of licensing deals with record companies, Twitter quickly backed out. Since then, SoundCloud has…

Magic Leap buys NorthBit Security

Magic Leap buys NorthBit Security

Magic Leap Inc. is a company that has produced a “head mounted virtual retinal reality” devise that projects 3D images on a wearer’s own retina. Companies across the globe, such as retail merchants with online stores are anxious to see Magic Leap’s new product. In 2015, Magic…

Snowbirds hurting businesses in southern states

Snowbirds hurting businesses in southern states

It’s been four years that the loonie has been decreasing in value before the US dollar. Things do not really seem to be getting any better and may stay that way for some time. In fact, there is a trend that points towards a greater loss. Snowbirds who have been staying for 3 to 6 months in the…

Will India approve Apple stores?

Will India approve Apple stores?

Apple iPhones are very popular but Apple does not have a store, as incredible as this might sound. India is a fast-growing market where Apple wants to be represented by authentic retail stores. Up until now, customers in India could only buy Apple products from third-party resellers. In the last few…

Advertisement