Spotify Ends SoundCloud Acquisition Talks, Again

image from ids.uni.eduAlways a bridesmaid, but never a bride.  For what we're pretty certain is the third time, SoundCloud has reportedly been left at the aquistion alter by Spotify.

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image from www.hypebot.com

Spotify has ended talks to acquire SoundCloud, a source familiar with the talks tells TechCrunch.  

During previous talks between the two streaming giants, price was the deterrent. This time, Spotify's pending IPO was also reportedly a factor. Spotify reportedly walked away from the table this week because “it doesn’t need an additional licensing headache in a potential IPO year,"  according to the source.

Future profitability may also be a factor.  

SoundCloud is a deeply unprofitable company, though new paid subscriptions are adding positively to their bottom line.  By contrast, Spotify could turn a profit as early as next year, according to one of the music streamer's board members and investors.

MORE: Spotify Could Be Profitable As Early As Next Year, Says Prominent Board Member, Investor



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