Spotify's SoundCloud Buy-Out Deal Is Put to an End

The team-up that did not happen for Spotify and SoundCloud.
The team-up that did not happen for Spotify and SoundCloud.  That Drop.

It would have been a dream come true with two of the most popular music streaming services collaborating into producing the 'only' online music service that anybody would ever need. But following Spotify's decision to turn away from its purchase of SoundCloud, that dream can only remain up in the clouds.

Spotify is said to drop from the acquisition because of uncompromised negotiations that reflect Spotify and SoundCloud's differing plans for growth. Negotiations are said to have been on-going for months.

Both Spotify and SoundCloud are mum on the issue, but insider reports say Spotify fears the acquisition will hurt its bid to go public by 2017; and SoundCloud is looking into a buyout by a still unidentified company. The sale is said to be worth $1 billion.

The merger is supposed to be the music streaming industry's attempt to hold on to the market amidst free downloads and torrents, and in the face of its biggest competitor, Apple. Amazon.com is said to be developing its own music streaming service, too. With this tech giant's reach, it will be another big threat to small companies like Spotify and SoundCloud.

Cherie Hu of Forbes says, "Spotify and SoundCloud need each other." This is in consideration with Spotify having the money and SoundCloud having the fan base. In 2014, SoundCloud was said to be devalued at $700 million, and with losses of $44 million for that year alone.

Hu is all in for the merger and adds that the uniqueness of each platform is a big plus, given that SoundCloud has a lot of independent artists under its wing, and Spotify has licensed artists registered with it. SoundCloud also has the 'community' feel, while Spotify has the solid structure to keep that feel more algorithmically sound.

Even if SoundCloud is widely known as an independent label brand, big label artists are also found on SoundCloud. In fact, Drake and Kanye West use the platform to personalize the music reach to their fans. While they are not tremendously hit by the fate of Spotify and SoundCloud, small-time singers and songwriters are.

Some are not happy with the merger failure, with one writer saying that SoundCloud is the "easiest way for an artist to bring new material directly to their fans." With the Spotify buyout, some are fearing the fate of SoundCloud's thousands of independent artists who enjoy fame under the free upload label.

    Most Popular
  • Is 'The Last Supper' worth watching? Audience and critics weigh in

    Is 'The Last Supper' worth watching? Audience and critics weigh in

    Faith-based films often receive mixed reactions, and The Last Supper is no exception. The movie attempts to bring a fresh perspective to one of the most iconic moments in Christian history, but does it succeed? Some reviews from critics and audiences provide insight into its strengths and shortcomings.

  • ‘The Chosen’ Season 5: The darkest season yet—What to know before watching

    The wait is over—The Chosen is back with its fifth season, and this time, things are getting intense. The new episodes dive straight into the final days of Jesus’ life, covering some of the most emotional and dramatic moments in the Bible. If you’ve been following the series, you already know that The Chosen isn’t just about retelling familiar stories—it’s about bringing them to life in a way that feels real.

  • Massacres in Syria: Over 1,000 dead, including Christians and Alawites

    Syria’s coastal regions have been devastated by a series of massacres, with reports indicating that over 1,000 people—many from Christian and Alawite communities—have been killed in brutal attacks. Entire families have been wiped out, and survivors are fleeing in search of safety as sectarian violence escalates.

  • Kim Sae-ron and Wheesung: The tragic irony of Korean society and the principles of happiness

    Not long ago, the media was in an uproar over actress Kim Sae-ron’s passing. Just months before, the same people who had relentlessly criticized her for her DUI incident were now expressing sympathy, saying, "The world was too harsh on her." The irony is impossible to ignore.

  • Newsboys move forward as a quartet after Michael Tait’s departure

    After more than a decade as the lead singer of the Newsboys, Michael Tait has officially parted ways with the band, marking a significant shift in the Christian rock group’s lineup. The remaining members—Jeff Frankenstein, Jody Davis, Duncan Phillips, and Adam Agee—have assured fans that they will continue forward, embracing a new season of music and ministry.