Spotify is no longer acquiring SoundCloud.
The digital marriage between SoundCloud and Spotify is no longer happening, according to various reports. In September, news came about of Spotify being in serious talks about acquiring SoundCloud, a competitor streaming platform. As of today, it looks like Spotify will not be taking in the website marked by the orange cloud.
A source at the Financial Times says the deal was abandoned as Spotify prepares for an IPO sometime next year. Meanwhile, Spotify did not want this encumbered by the costs and licensing issues of acquiring SoundCloud.
All things considered, this seems like a smart move for Spotify. The benefits of acquiring SoundCloud are far outweighed by the cost – SoundCloud was last valued at a staggering $700 million. As the streaming service heads towards an IPO in 2017, it looks as if their best bet would be leaving SoundCloud be for now.