The three major record labels could be set to take home $45 million as stakeholders.
Last year, Spotify backed out of “advanced talks” to acquire the platform, which had been reportedly set at a price tag of $1 billion. Music Business Worldwide now claims that SoundCloud could be purchased for somewhere closer to $500 million – and Google is thought to be “the current favorite.”
The publication also claims that it has acquired SoundCloud’s latest financial report and can confirm that each of the three major record labels – Universal, Sony and Warner – all own stakes in the company.
According to MBW’s “rough approximation,” Universal owns a four per cent stake in SoundCloud, with Sony on three per cent and Warner around two per cent. Altogether, this would result in the majors getting a cut of around $45 million on a $500 million sale.