Twitter makes a $70M investment in this music-streaming service
It might be a calculated (and rather expensive) move to attract new users, but Twitter might have just made one of its most strategic investments yet.
The social media giant just put $70M into music-streaming service SoundCloud.
SoundCloud, which racked up nearly $77M in debt last year, is in need of the funding which will now help put the company at a value of around $700M.
Twitter CEO Jack Dorsey confirmed in a statement:
"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."
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SoundCloud's "community-supported approach" includes users being able to curate their own music profiles and follow other users of similar music taste, while also having the ability to "favorite" and comment on certain tracks.
This is much like Twitter's "favorite," "follow" and "retweet" features.
A spokesperson for SoundCloud was equally as excited about the deal:
"Both [Twitter and SoundCloud] facilitate and inspire contemporary culture to happen in real time while reaching millions of people around the world. This investment will enable SoundCloud to remain focused on building value for creators and listeners alike, and to continue the global rollout of many company initiatives such as our recently launched subscription service, SoundCloud Go."
The investment could be the start of a strong, mutually beneficial partnership between the two—Twitter helping SoundCloud get the exposure that it needs, SoundCloud helping Twitter attract and retain new users.
Companies helping companies -- something you love to see.
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