Twitter Buys A Big Chunk Of SoundCloud

Amidst numerous buyout rumors, it seems like Twitter Inc TWTR made a silent, yet quite big move in the music industry. As reported by Recode, the social media giant invested $70 million in music service SoundCloud.

A couple of years ago, several media outlets had reported that Twitter was trying to buy SoundCloud. However, the company did not go through with the transaction in the end. Now, the tech company has decided to buy a chunk of the music streaming provider, investing roughly $70 million, “as part of a round that should end up in the $100 million-range,” sources familiar with the matter told Recode. It is expected that the round will value SoundCloud at approximately $700 million, which would imply no surge in the valuation in relation to 2014, when it managed to raise $60 million.

While Twitter’s CEO Jack Dorsey has not shared any details regarding his company’s involvement with SoundCloud, he did confirm it now owns a stake in the music service, arguing that SoundCloud has been a great partner of Twitter over the years, “and their community-supported approach mirrors ours in many ways.”

SoundCloud reps haven’t commented on the issue yet.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.