Should Twitter Acquire SoundCloud?


SoundCloud might be the YouTube of music, but that doesn’t mean Twitter should play Google and acquire it. There are better ways to spend the $2 billion from its IPO than on a music startup which won’t necessarily improve its core service. [Update: And now SPIEGEL ONLINE, a German news outlet from SoundCloud’s home country, says Twitter is not buying SoundCloud. SPIEGEL reports that Twitter did in fact consider buying the startup, but sources familiar with the matter tell it Twitter decided against going through with the deal.]

MoPub. Now that was a smart acquisition at a price tag somewhere around $350 million. Twitter knows a lot about what people are thinking about but has limited room to show marketing messages. Pouring its targeting data into MoPub so it can sell better ads elsewhere strengthens both.

SoundCloud, on the other hand, makes a lot less sense. Peter Kafka of Re/code reports that sources familiar with both companies say Twitter is considering it.

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