SoundCloud may have over 170 million users logging in, but it’s never been able to transform itself to a lucrative money-making venture. As is often the case with tech companies, profits really come into play when a company is sold for a huge amount of money to another company that’s better able to manage growth.
When Spotify walked away from the table, it looked like SoundCloud was doomed.
Now, it looks like SoundCloud might be bought out by Google. Two important bits of information to keep in mind here. First, we’ve heard this kind of talk before. This may just be a rumor. Second, while SoundCloud was asking Spotify for $1 billion, it’s reportedly asking Google for $500 million. That lower price might just be the ticket to an actual buyout. In any case, we’ll just have to wait to see what happens next.