Twitter Invests A Big Chunk Into SoundCloud

Amid numerous buyout rumors, Twitter Inc (NYSE: TWTR) made a quite big move in the music industry. Recode reported the social media giant invested $70 million in music service SoundCloud.

A couple of years ago, several media outlets reported Twitter was trying to buy SoundCloud. However, the company didn't go through with the transaction. Now, the company has decided to buy a chunk of the music streaming provider “as part of a round that should end up in the $100 million-range,” sources familiar with the matter told Recode. It's expected that the round will value SoundCloud at approximately $700 million, which would imply no surge in the valuation in relation to 2014, when it managed to raise $60 million.

While Twitter’s CEO Jack Dorsey hasn't shared any details regarding his company’s involvement with SoundCloud, he did confirm it now owns a stake in the music service, arguing that SoundCloud has been a great partner of Twitter over the years, “and their community-supported approach mirrors ours in many ways.”

SoundCloud reps haven’t commented on the issue yet.