According to people familiar with the process, Twitter Inc. has started talks to acquire or partner with several music startups as part of its strategy to focus on increasing its user growth. One of the people with knowledge of the matter, who asked not to be named because the information is still not public, reported that the German company SoundCloud Ltd is one of the eventual partners of Twitter. SoundHound Inc. is also one of the companies Twitter is considering a partnership with.
Twitter Inc., however, was also said to had disclaimed the negotiations and had not reached an agreement, according to another person close to the talks. The latter did not disclose any more specific information but said that “the numbers didnt add up”. Der Spiegel also reported that the talks were put to an end.
Twitters spokeswoman Will Stickney refused to make any comments on the situation. SoundClouds spokeswoman Kristina Weise did not return a call for comment.
The German music startup SoundCloud was said that it could have become Twitters largest acquisition so far. The social media company is currently trying to expand its reach and is focused on improving its user growth and adding various services.
An acquisition or partnership with SoundCloud would undoubtedly be beneficial for Twitter with its more than 250 million subscribers. The startup does not only offer free opportunity for musicians and DJs to promote the music they make, but also provides them with the opportunity to make professional accounts where they can share their own music projects.
The other possible partner of Twitter was said to be SoundHound, which currently has more than 200 million users. The startup offers a mobile app that providers customers with the opportunity to search and buy music based on what theyre hearing. The vice president of sales and marketing of SoundHound – Mrs. Katie McMahon said for Bloomberg: “As a leader in mobile, we’re viewed as a very interesting source that can show insights into what may be happening. She added that SoundHound is “monetizing its user experience in a way that keeps users engaged.”
Twitter Inc. was 0.94% down to close at 31.77 dollars per share yesterday. According to the information published on CNN Money, the 25 analysts offering 12-month price forecasts for Twitter Inc. have a median target of 42.00, with a high estimate of 70.00 and a low estimate of 26.00. The median estimate represents a +32.20% increase from the last price of 31.77.
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