Back in September, people had mixed feelings when news leaked that Spotify was considering a purchase of competitor Soundcloud. From the initial reports, it seemed like a deal was very close to being done. However, it appears things went off the rails at some point between now and those September meetings, as TechCrunch is now reporting that Spotify has backed out of the deal.
No official statements have been made, but TechCrunch’s source states that Spotify feared the acquisition would negatively affect their impending IPO. However, there’s a lot of hearsay here as Spotify has not officially announced any plans to go public in 2017. The specific quote from the source cited “an additional licensing headache” as the main reason for dumping the deal.
As of now, no super-streaming platform is going to be happening. However, if Spotify goes public with its 100 million users, it may decide to do so after the dust settles.
