Spotify Reportedly in Talks to Acquire SoundCloud

Despite Spotify’s user base being nearly double the size of Apple Music’s, Apple has been dominating Spotify when it comes to timed exclusives, getting Chance the Rapper, Frank Ocean and Drake’s new albums before Spotify. Now it looks like Spotify is trying to find its own edge in the battle of the streaming giants.

According to the Financial Times, Spotify is in advanced talks to buy SoundCloud, a music streaming service that places a focus on independent and emerging artists. SoundCloud is reportedly worth $700 million but has had trouble monetizing its service, and has failed to ever turn a profit.

This isn’t the first time Spotify has expressed interest in SoundCloud, but previous talks earlier this year fell through over Soundcloud’s asking price.

According to the Financial Times, Spotify CEO Daniel Ek said in a Swedish television interview:

The next decade for us is very much about ensuring that even more of these artists can live on their music, and bringing them together with a new audience. Today our users say ‘introduce me to new music.’ What the artists say is ‘help me finding my audience.’ Essentially, that’s two sides of the same coin.