A new report indicates that music streaming service Spotify is in advanced talks to buy SoundCloud. The deal is rumored to be valued at $700 million and could see the former broadening its already-large userbase of 40 million users. This will also offer the subscription-based music service to further its lead against Apple's Music service.
According to Financial Times, this deal will benefit both parties: Spotify will be able to strengthen its userbase and allow it to offer a diverse library of independent music, remixes and podcasts, thanks to SoundCloud. On the other hand, SoundCloud hasn't managed to find a successful business model for itself as of yet and has continually reported losses over the years. Earlier this year, it announced its SoundCloud Go service, but it hasn't been phenomenally successful so far, so it makes sense for the music streaming service to sell as well.
Apparently, the two have already entered talks twice before but negotiations have always fallen through. With that being said, both parties haven't confirmed the rumor as of yet and it'll be very interesting to see how the competition responds, should the report prove to be accurate.