Earlier this year it was announced that Spotify was looking to purchase Soundcloud. That deal now looks to be dead.
Music streaming service Spotify has abandoned its bid to take over rival platform SoundCloud after months of talks, TechCrunch reports, citing a source familiar with the discussions.
In September, the Financial Times reported the two European firms were in advanced talks over an acquisition. TechCrunch now reports that the discussions ended because Spotify feared the deal would have a negative impact as it moves towards an initial public offering (IPO).
While Soundcloud has stepped up efforts to compete recently, Spotify’s IPO appears to trump all.
SoundCloud stepped up its challenge to Spotify earlier this year when it expanded its own subscription music streaming service to the U.K. and Ireland. Eight-year-old SoundCloud allows people to upload tracks. It’s best-known as a place to find emerging artists, DJ sessions and song remixes.
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