The owner of audio streaming company SoundCloud is considering the sale of the company, with Bloomberg reporting they are holding out for a bid breaching the $1bn mark.
Investment firm Doughty Hanson & Co are reportedly set to court offers at the price of $1bn, with the company’s musically-engaged and passionate 175m users, likely an attractive acquisition to a number of media and social media brands.
Back in February, SoundCloud company only recently released its financials for 2014, a total loss of €39.14m for the year. Throughout 2016, the company has opened up new income flows; first with the launch of a premium offering, and secondly by piloting video ads with US users as it looks to get advertisers in its pocket.
In June, Twitter brought itself closer to SoundCloud with a $70m investment in the company through its Ventures initiative, a move that aroused whispers of an acquisition by the social network. Twitter only valued the company at $700m, shy of the $1bn it reportedly seeks.
Of course, Twitter’s recently revealed its financials showing a company in flux, that seriously needs to chase growth and the monetisation that should accompany that.