Twitter has bought a minority stake in music streaming service SoundCloud – an investment of around $70m (£49m) according to Re/code.
It's part of a funding round expected to reach $100m, valuing SoundCloud's business at roughly $700m.
The deal is particularly interesting considering Twitter's history. It reportedly considered acquiring SoundCloud back in 2014, but walked away from the deal. The company has also dabbled in its own music launches in the past, most notably #Music, which launched in April 2013 but was closed down less than a year later.
It's currently unclear whether the deal with SoundCloud is part of a strategic partnership but the two companies have worked together in the past, on Twitter's Audio Card product. Could it be planning to launch another music product?
In a statement to Re/code, CEO Jack Dorsey said only that the investment was intended “to help support some of our efforts with creators” and that SoundCloud's “community-supported approach mirrors ours in many ways”.
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