SoundCloud has long been known as one of the best places to go if you're an aspiring or indie musician; you can build up an audience and even monetize your music. The app has also garnered attention as one of the better music streaming services out there. It has not, however, been known as one of the best services to invest in. SoundCloud hopes to change that with a subscription service, launched just a while ago, that gives paying users ad-free access to the full gamut of music available on SoundCloud, including some big names that found their way onto the service through deals with record companies. A few years back, however, the company was actually on the verge of being bought out by Twitter. It would appear now that they've take a slightly different approach.
Rather than buying out SoundCloud outright and throwing themselves into all of the ups and downs of doing so, including getting their own feet wet in the music industry, Twitter has decided to invest $70 million in SoundCloud instead. According to Twitter CEO Jack Dorsey, who confirmed the investment, SoundCloud has contributed to Twitter's success in the past, helping them to pick up new users and serve as a gateway to interesting content. Dorsey also noted that SoundCloud's "community-supported approach" is not unlike Twitter's own strategy, inspiring camaraderie between the two social forces.
Although the streaming firm's reputation and value have been a bit on the low side recently, mostly due to a recent debt round, this newest funding round is projected to hit the $100 million mark, leaving SoundCloud's value at a cool and manageable $700 million. The investment could go beyond simple ownership of a stake in a company that inspires faith in future growth, of course; Twitter can use SoundCloud to engage new users and help integrate entertainment into the platform, and SoundCloud can use Twitter as a marketing point for its artists and a place to promote its new subscription plan. The strategy behind the investment, if any, was not touched on by Dorsey and SoundCloud has yet to comment on any details regarding the matter.