Offers over $1bn would be music to the ears of SoundCloud's owner as likely sale looms
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.