SoundCloud logo

Just yesterday we learned Twitter was interested in buying music-sharing site SoundCloud, but today a report from The Wall Street Journal claims the rumored merger is already dead. Citing an anonymous insider, the paper claims Twitter passed on the deal after deciding the “numbers didn’t add up.”

Twitter reportedly had a short window of exclusivity to make an offer for SoundCloud, but instead chose to let the deadline pass. The German music service can now accept offers from other companies, though it’s unclear whether any are interested in purchasing SoundCloud, which was recently valued at roughly $700 million. WSJ also notes that it’s not sure which company initiated talks of a possible merger, suggesting that SoundCloud may not necessarily be interested in seeking out another buyer.

SoundCloud, which offers free music hosting and streaming along with a paid tier for professional musicians, could have offered a new stream of revenue for Twitter, which saw its stock plummet after reporting weak user growth earlier this year. This isn’t the first time Twitter’s shown an interest in music apps. The company previously tried and failed to launch its own Twitter Music service, so perhaps we’ll see another attempt in the near future through either acquiring another company or launching another in-house product.

TWTR. Powered by Yahoo Finance
Source WSJ