Twitter to now invest about $70 Million on SoundCloud, a music streaming services base in Berlin, Germany. Twitter was meant to acquire SoundCloud last year, but rebuff in the last minutes. The $70million investment will worth SoundCloud a little over $700 million dollars in terms of valuation.
The $700 Million valuations that was placed on SoundCloud in 2014 after the $60 million investment made on it, was the same amount after Twitter invest this new round B because SoundCloud have gone to raised a debt fund.
Both companies 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 recently launched subscription service, SoundCloud Go.
Recode reckons that Twitter might view an integration with SoundCloud as a way to increase growth and engagement, and SoundCloud may look at Twitter as a way to promote its newly launched subscription service, which is crucial to the company’s plans.
It is worthy to note that Twitter have been coming with lots of changes on it is platform, is the Periscope Sketching: Twitter Adds A Snapchat-Like Feature To Periscope , later change it is algorithm on Too Much Ado Over Twitter New Algorithm Timeline where new tweets are not arranged by time but what twitter thinks you will like to see, not necessarily the time the tweet was posted. And lately, it also added Periscope Sketching a SnapChat like feature to make your videos come to live and also edit your uploaded pictures easily while on twitter. The major changes on twitter in recent times is the removal of 140 Character Limit on twitter
While the investment parts of twitter have not been that pleasant as Snapchat Now Has More Daily Users Than Struggling Twitter for a company that have been here for a long time, which some analyst were predicting side by side with Facebook, it is surprising that Twitter is still hang with its just 35 millions users. I found it encouraging for Twitter management to be investing in other companies that have not started raising profit