Google is considering a $500 million acquisition of SoundCloud, according to "high-level rumors" reported by Music Business Worldwide.
Spotify infamously backed out of "advanced talks" to buy the streaming platform for a price of $1 billion last year. Now it appears Google is "the current favorite" to take advantage of the Berlin-based company's continuing losses, with a cut-price $500 million deal seemingly on the table.
The publication also claims that it has acquired SoundCloud’s latest financial report, which confirms that each of the three major record labels – Universal, Sony and Warner – all own stakes in the company.
According to MBW’s “rough approximation,” Universal owns a 4 percent stake in SoundCloud, with Sony on 3 percent and Warner around 2 percent. Together, the three labels would be set for around $45 million — peanuts, in the grand scheme of things.
Head over to MBW to read the full report.
After you've finished, have a nosy around SoundCloud's stylish Berlin office.