Renowned micro-blogging site Twitter has planned to invest 70 million USD infamous music streaming web portal SoundCloud, which will help the site to enter music industry including stakes in the company. Past two years was given to planning so that it may target stalled growth thus getting engaged with 300 million users/subscribers at once.
According to SoundCloud Spokesperson, Twitter has invested around $70 million in the music service, as part of a round that should end up in the $100 million-range. We can confirm that Twitter has made an investment in SoundCloud. 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 our recently launched subscription service, SoundCloud Go.
The sole purpose of funding in music portal was to increase traffic as it had lowered in past few years due to similar competitions. Recently, it faced quite negative responses along with the sequential decline in its Monthly Active Users (MAU) base witnessed a downfall which seemed to be steep. The traffic reduced to 305 million in comparison to 307 million users on the monthly basis. It somehow retained its position in the fourth quarter which consisted of SMS followers only.
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Twitter CEO Jack Dorsey opined that “Earlier this year, we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators. They’ve been great partners of ours over the years, and their community-supported approach mirrors ours in many ways.” The respective company went through hard times as many leading committee members and core employees resigned from Twitter.
Twitter’s deal with National Football League (NFL) to showcase or stream 10 matches might help in generating revenue thus, gaining traffic all over again. The particular benefit ought to help Twitter stay firm in computing space. If Twitter shares stay up for some time, it is a clear signal that investors would rather see it as the huge investing deal in near future.