Music Business Worldwide recently reported that Google is already making a hard bargain to purchase the Berlin-based streaming service named SoundCloud. Cutting the streaming company's $1 billion prices into half that sits around $500 million. Having said that the company has more than 175 million subscribers worldwide.
Last December of 2016, TechCrunch said that Spotify "ultimately walked away because it feared that an acquisition could negatively impact its IPO preparation." The price tag of $1 billion also was the reason that Twitter backed out from buying the streaming company in 2014.
According to some online publication, it was also revealed that Universal Music Leisure Ltd, Sony Music Entertainment, Warner Music Inc. and WMG are said to be major Soundcloud shareholders, so by Google purchasing the SoundCloud could be a mean major problem for these big companies. Furthermore, Music Biz told MBW that SoundCloud could be possibly purchased closer to $500 million and Google is thought to be the current favorite.
Meanwhile, a confirmation statement sent to the UK's Companies House last December 21, 2016, revealed that SoundCloud Ltd has a total of 4,676,273 shares and around 355,351 of those are categorized as "Ordinary Class A." Universal Music Leisure Ltd is leading its music business interest which owns 191, 472 ordinary class A shares, and 2 Series D shares.
In addition, Sony Music Entertainment just owns a few shares, having 134,056 ordinary class A shares, and 2 Series D shares. While Warner Music Inc, owns only 29,823 original class A shares. However, WMG, know to be the very first major company to be able to license SoundCloud way back in 2014, just owns 32,755 series D shares. This gives Universal company 4% holding, Sony on 3% and Warner to be around between 1% and 2%.
This could be a start of a major shake-up in music if SoundCloud does sell to Google this 2017. Fans better keep an eye for updates because if SoundCloud gets a new owner, it would be an enormous change to the music industry.
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