Spotify is in talks to take over Soundcloud, according to a report in The Financial Times.
The report says that talks are at an advanced stage, with the deal said to be worth £535 million.
Since it was launched in Sweden in 2007, Soundcloud has gone on to attract 175 million users a month. An average of 12 hours of music is uploaded to the site by artists every minute. Its largest investor is Twitter.
However, analysts say that Soundcloud has started to see usage level out since 2014, and the firm has yet to make a profit. Meanwhile, Spotify remains the most-used streaming service, but has faced increasing competition from Apple Music and Tidal in recent years. Spotify has 40 million subscribers, compared to 17 million for Apple Music.
Soundcloud has also come under criticism from artists, with Four Tet calling the service “A total slice of shit” for musicians, saying that overly-tight copyright material software on Soundcloud had made it technically complicated to be able to upload remixes.
There have also been concerns that it adds songs to artists’ site without their permission as a way of monetising the service. However, Soundcloud remains one of the most recognised sites for new musicians to be able to get their music heard. The most-streamed track on the site this week (September 29) is ‘Broccoli’ by Big Baby DRAM, with 2.63 million plays.
Spotify, which also started in Sweden, celebrates its tenth year this year. It too has failed to make a profit, though it had a revenue of £1.5 billion in 2015. Neither Spotify or Soundcloud have commented on the takeover talks.