From the looks of it, Spotify won’t be buying SoundCloud anytime soon. The acquisition, over which the music streaming companies were reportedly in serious talks, is apparently now on hold. Spotify has been sharpening its focus on filing for an IPO next year while SoundCloud tries to establish itself as a freemium subscription service.
Even though lots of people think a Spotify-SoundCloud merger would make a ton of sense from a product and data standpoint, the pricey prospect (SoundCloud would likely cost around $1 billion) evidently doesn’t make enough business sense to justify the distraction while Spotify gets ready to go public. But who knows? If nobody else snatches up SoundCloud (whose relatively new subscription business is growing, but still small), Spotify might be able to get a better deal on it down the line.