Spotify aborts plans to acquire Soundcloud

It seems that Spotify has no intention of taking over Soundcloud. Rumors have it that the two companies have ceased talks about an acquisition, despite talks being held back and forth for months.

That reports the usually well-established TechCrunch based on a source at Spotify. In the end, Spotify itself would have ended the takeover talks with Soundcloud; the stated reason would be an expected negative impact on the possible IPO of Spotify. Reportedly, the music streaming service would not want a ‘headache file’ regarding music licenses in a year when a possible IPO is planned. The TechCrunch source refers to next year; Spotify is expected to issue its shares on the stock exchange.

Talks between Spotify and Soundcloud are said to have been going on since September, although neither company has publicly disclosed anything about it. At the time, the talks were rumored to be at an advanced stage. Incidentally, Spotify would have tried to take over Soundcloud more than once in the past two years.