Saturday 20 January 2018

Twitter 'considered buying Spotify and Pandora'

The Twitter logo is displayed on the floor of the New York Stock Exchange. Reuters
The Twitter logo is displayed on the floor of the New York Stock Exchange. Reuters

Twitter has considered buying online music services Spotify and Pandora in recent months, according to a new report.

The micro-blogging site is said to have considered bids for Spotify, which boasts 10 million paying subscribers worldwide, and US-only service Pandora, which has an estimated worth of close to $5bn.

Twitter's plans to purchase rival music service Soundcloud were abandoned following disagreements over the profitability of audio advertising, sources told the Financial Times.

oundcloud, which allows musicians to upload, record and promote their tracks, was recently valued at $700m.

Twitter's chief operating officer Ali Rowghani recently held talks with Soundcloud, and considered bids to purchase Spotify and Pandora, but did not hold talks with him, the sources said.

Twitter's renewed interest in music-streaming companies comes after Apple purchased Beats, the headphones and music-streaming firm founded by Jimmy Iovine and Dr. Dre, for $3 billion.

The Beats deal was seen as Apple's effort to make headway into online music streaming, the fastest-growing segment of the market, as iTunes sales plateau.

Twitter aborted its own music app for the iPhone, Twitter #music, in March following slow user take up. The service attempted to create a personalised radio station based on the tweets of those users followed.

Twitter has made several notable acquisitions in the past, including micro-video app Vine and social data provider Gnip.

Around $6.5 billion was wiped off the company's value in extended trading during February, following a dramatic slowdown in user growth.

The number of people who use the social network at least once a month grew 30 per cent to 241 million in December 2013. However, that marked a slowdown on the 39 per cent year-on-year increase the previous year.

More than 2,000 children, some as young as nine, have been investigated by the police in the last three years over comments they have posted on Twitter and other social networking sites, it was revealed last week.

Online Editors

Promoted Links

Business Newsletter

Read the leading stories from the world of Business.

Promoted Links

Also in Business