Spotify gives up on bid for SoundCloud
Several months of negotiations about the possibility for Spotify Technology SA to take over digital music peer SoundCloud Ltd. ended without an agreement, according to information revealed on Thursday by TechCrunch. An unnamed source from the podcast and video streaming service operator based in Stockholm and London was quoted saying the initiative hit a wall this week.
The person familiar with the matter added Spotify's management backed out because of fears the transaction could weaken its position ahead of the planned initial public offering. The issue is centered on licensing, the article said. Namely, the number of involved music labels would make the deal complex and costly. Earlier speculation in the media indicated Spotify has tried to acquire the German operator on two prior occasions in as many years, where the talks on the price led to nowhere.