Twitter considered a possibility of buying online music services Spotify and Soundcloud. The online social networking and microblogging service intends to spend billion dollars to find new sources of income, The Financial Times reports.
The negotiations on the acquisition have been conducting for several months. For the last year, the number of Twitter followers dropped significantly, thus displeasing the investors. Since the November IPO, the Twitter shares lost more than 44% of their value. The new music service is supposed to make Twitter more attractive to users. In January, Soundcloud was estimated at $700 million. In the meantime, Spotify’s stock market value is at $4 billion, while Pandora’s capitalization is about $5 billion. The acquisition of MoPub, a mobile advertisement marketplace, was the biggest one Twitter has made so far.
According to The Financial Times, Twitter tends towards Soundcloud. The companies’ spokesmen decline to comment on this matter.
Previously, Twitter had been developing its own application Twitter Music that enabled users to find new tracks which are trending at the moment and see what their contacts were listening to. Unfortunately, the music app did not work out and was shut down in March 2013. Shortly after, Twitter teamed up with Billboard to create a real-time chart ranking songs shared in the United States.
