Twitter writes off its $70 million investment in SoundCloud from 2016

Twitter writes off its $70 million investment in SoundCloud from 2016

As  struggles to keep a sinking ship above water, has written f the considerable chunk change the social media giant …

As  struggles to keep a sinking ship above water, has written f the considerable chunk change the social media giant invested in the music streaming platform less than two years ago — a cool . That figure, however, could have been a much heavier blow, as many will remember that Twitter was just about 140 characters away from purchasing for just over $1 billion. When the dust from the failed purchase settled, Twitter injected SoundCloud with a much-needed round funding in the summer 2016, in hopes leveraging massive pop stars like , , and ‘s thriving social followings as direct-to-user music distribution networks. Less than two years later and Twitter is facing the music — they’ll likely never recoup those funds, or if they do, it’ll take much longer than they’re willing to wait.

Moving on because the funds are, “not expected to be recoverable within a reasonable period time,” the sizable write-f shouldn’t really be more than a speedbump for Twitter this year. By the end 2017, reports revealed that the platform had raked in nearly $2.4 billion in revenue, and another $4.4 billion short-term investments.

Meanwhile, SoundCloud continues a seemingly never-ending cycle survival measures, pivoting away from their $10 monthly subscription model to a more affordable $5 subscription as well as a renewed emphasis on a plan provided to music producers and other prosumers. and may be, but Twitter’s write-f proves that the digital music marketplace is still very much an uncertain and shifting landscape.

RELATED ARTICLES