Spotify won't buy SoundCloud after all

Rumors began circulating last month about Swedish company Spotify's potential interest in taking over the largely independent music distribution platform SoundCloud in Germany. SoundCloud is the ideal platform for all independent artists who need a way to distribute their content, whether in the form of songs or through podcasts. After several months of negotiations, and according to Techcrunch, the Swedish firm seems to have abandoned the negotiations so ultimately not all SoundCloud content will be integrated into Spotify.

Apparently the Swedish company was forced to rule out a possible purchase from SoundCloud because it would negatively affect an upcoming public offering. As we can read in Techcrunch:

Spotify hasn't officially announced that it will go public next year, but there has been a lot of speculation about it, including a funding round. According to our sources, negotiations between Spotify and SoundCloud have been frozen because the Swedish firm does not need an additional headache in the very likely event that it decides to go public next year.

SoundCloud allowing users to upload, promote and share audio recordings would have allowed Spotify to add user-created content to its own music catalog, but Spotify should have deal with licensing issues something you wouldn't want to do with an IPO involved.

Spotify's subscriber count currently stands at 40 million, while Apple Music just reached 20 million. When it comes to the number of paying SoundCloud users, the only thing we know is that the music service is used by 175 million listeners each month.

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