San
Francisco: Social networking website Twitter has invested $70 million in
popular music streaming service SoundCloud, a move that may push Twitter’s
stalled growth and engagement with its over 300 million users.
According
to a Re/Code report, “Twitter has invested around $70 million in the music service,
as part of a round that should end up in the $100 million-range.”
According
to Twitter CEO Jack Dorsey, the company now owns a stake in SoundCloud. Nearly
two years ago, the micro-blogging site had planned to buy SoundCloud but since
then, had gone silent on this.
“We
can confirm that Twitter has made an investment in SoundCloud. Both companies
facilitate and inspire contemporary culture to happen in real time while
reaching millions of people around the world,” a SoundCloud spokesperson was
quoted as saying. “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 spokesperson added..
The
micro-blogging site reported 305 million monthly active users for the fourth
quarter, compared to 307 million in the third quarter that excluded SMS-only
followers.
As
the news of Microsoft’s $26.2 billion acquisition of the professional
networking website LinkedIn made the headlines this week, the shares of
micro-blogging website Twitter went up more than eight percent in early-morning
trading.
Microsoft-LinkedIn
acquisition in the enterprise social media space has rekindled hope for Twitter
which is affected by stalled user growth. If Twitter shares stay up for some
time, it is a clear signal that investors would rather see it in someone else's
hands, Re/Code reported.
Google
is rumoured to be ahead in the race to acquire Twitter. Another key global
media player Comcast may also join the race, the report added.
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