Twitter invests $70 million in SoundCloud

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It has been reported that Twitter has invested around US$70 million in SoundCloud, according to the New York Times.

Twitter have since confirmed the reports that investment had taken place but did not divulge any financial details.

Jack Dorsey the Twitter chief executive explained “Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators.”

For those of you who may be unaware, SoundCloud is a music streaming site that enables users upload music and audio files and allows them to be shared with others users.

The investment by Twitter was part of a funding round that is predicted to be total around $100 million which would then see SoundCloud valued somewhere in the region of $700 million.

Twitter had previously tried to break into music in 2013 with the Twitter Music site which closed down around 12 months later.

The micro blogging site said at the time that they would be exploring new avenues to bring music based content to the service and it appears that SoundCloud may be the answer.

It is alleged that Twitter considered purchasing the startup company back in 2014 but eventually walked away from the deal with the company then being valued at $700 million – the same as the present valuation.

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