This is music to the ears of the Berlin Start-up scene: The Swedish music streaming market leader Spotify wants to buy, according to a report in the newspaper, the competitors, Soundcloud, one of the best-known Berlin-based Start-ups. The two companies were in advanced takeover talks, although a Deal could still fail, wrote the “Financial Times”, citing well-informed circles.
The possible Spotify Deal is the hottest rumor around the music service Soundcloud, which is actually a Start-up. From time to time via an IPO in 2008, first in Stockholm, then in Berlin, launched the Internet-platform has been speculated. Now, for Berlin standards huge purchase price is to be in the conversation. Official it is not.
Soundcloud to $ 700 million
a rating of reports In the last financing round, the valuation was of Soundcloud, according to the media at 700 million dollars. The financial service “Bloomberg” reported in the summer, the behind Soundcloud, the investors looked to the company for a billion dollars to the sale. The Berlin would be in order on the best ways to be a “Unicorn” (the unicorn), as the financial world Start called ups, which are at least a billion dollars in value. But apparently, no buyers have been found so far. In June, 100 million dollars of investors took Soundcloud, among other things, from Twitter. In the case of Soundcloud, among other things, the U.S. venture capital investor Union Square Ventures, and Kleiner Perkins, as well as the British Index Ventures are engaged.
Spotify has more than 100 million users
Spotify was founded ten years ago, and 40 million of them paying subscribers, the number one of the music streaming services, with more than 100 million users. The Swedes, however, make no profit. Soundcloud with a user base of 175 million has recently released the financial figures for the year 2014. At the time, the Online music service made 17 million euros in sales, an increase of 50 percent and also a loss of 39 million euros.
what is the business model sustainable profit is to be profitable, have not been able to explain the Berliner yet. The company was started as a platform for high-loaded music, but also Deals with the major music companies. At the beginning of the year, two important licensing agreements were concluded with Universal and Sony. The end of March, launched subscription offer “Soundcloud Go” brought the Hearing to a breakthrough in the case of the Paid subscriptions. the dpa
The music streaming needed, no records-Vinyl and CDs. The music flows (eng.: streaming) Online-receive only as a continuous data flow from the Internet to the mobile or stationary speakers. Also Videos, TV or games to stream. It must be stored no more data on the Computer. On month-to-month subscriptions (usually for € 9.99) allows the user to advertising services like Spotify, Soundcloud, Deezer, Napster, or Apple’s Music-free to use, fast Internet connections make it smooth. The subscription allows you access to 30 to 40 million Songs. According to IT Association Bitkom, 39 percent of German Internet users are using streaming music services. On 14.4% of the proceeds (€1.6 billion) accounted for the least on the German music market.