LONDON - JULY 02: In this photo illustration the Twitter website is displayed on a laptop computer on July 2, 2009 in London. The social network site, started in 2006 in California as a sideline project, has grown into a global brand becoming one of the fastest growing phenomenas of the Internet. (Photo by Peter Macdiarmid/Getty Images)
Twitter is looking to expand into music and gain new followers, according to reports.
Twitter is working on buying SoundCloud, considered the "YouTube for audio" where users share audio clips and music, according to the Re/Code based on unnamed sources.
SoundCloud, based in Berlin, is an audio file-sharing service with around 250 million users. With so many users, Twitter can expect an expensive purchase price. We don't know how much that would be, since there weren't any numbers thrown out about the deal, but SoundCloud's valuation has reached $700 million, so it's likely that Twitter is paying a hefty sum and the most it's every paid. (The last expensive acquisition was MoPub for $300 million.)
Twitter has attempted interest in music before, including a Twitter Music app that was terminated earlier this year. Still, the opinion that sharing music and audio should be on Twitter seems to have taken hold. The only issue has been SoundCloud's music licensing, but with Twitter's more powerful lobby, it may be easier to get music companies to loosen the restraints on their music.
Add the fact that many Twitter users already use SoundCloud and the acquisition makes more sense. Twitter's investors want more growth and the acquisition may be able to give the San Francisco-based company that boost.