Twitter has invested about $70 million in SoundCloud to help the music streaming business expand its paid offering.
The investment is part of a larger financing round expected to amount to about $100 million, valuing the company at about $700 million, according to a person familiar with the situation.
"We can confirm that Twitter has made an investment," SoundCloud said in an emailed statement Wednesday, declining to comment on specifics or the valuation. It said it will use the money to "continue the global roll-out of many company initiatives such as our recently launched subscription service, SoundCloud Go."
While SoundCloud's massive, engaged user base has tantalized the recorded music industry for years, it had been under increasing pressure to develop a paid service after failing to turn its reach into sustainable revenue streams. SoundCloud, which says it has 175 million monthly users, released the premium service in March and has completed deals with major music labels, as well as publishers and independent labels.
Twitter has previously tried to integrate music into its product and in 2014 considered buying SoundCloud, people familiar with the situation said at the time. Twitter has invested in startups including smart headphones developer Muzik and mobile marketing platform Swirl.
Recode first reported the investment.
-- Bloomberg News