Twitter invests in SoundCloud

Two years after it decided against purchasing the music streamign service...

Twitter has invested approximately $70m in SoundCloud, a company its long had an interest in.

The social networking giant was primed to purchase the music streaming service entirely in 2014, before talks were eventually called off.

The new investment comes as part of a round that should see SoundCloud take roughly $100m.
SoundCloud is expected to be valued at $700m.

Twitter CEO Jack Dorsey revealed:

"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."

Last month, SoundCloud's Go subscription service, which aims to compete with the likes of Spotify and Apple Music in the subscription streaming game, launched in Ireland and the UK.

The service boasts over 125 million tracks and allows for offline listening.

Meanwhile, SoundCloud's free service is now ad-supported.

Company co-founder and chief technical officer Eric Wahlforss said:

"This is the world's ultimate music subscription service. It is all the content from major labels, major artists, major indies, back catalogue things – all of that, plus all of the stuff that is on SoundCloud today. All the emerging talent, all of the stuff that big artists drop that you can't find anywhere else, DJ mixes, podcasts, all of those things".

SoundCloud Go was rolled out in the US in March, with the service set to launch in further markets across the world on a rolling basis this year.