Spotify may acquire SoundCloud to expand its services

Spotify is currently the market leader in the music-streaming market with 40 million paying subscribers per week, whereas its arch-rival, Apple’s figure stands at 17 million. And to further strengthen that lead, Spotify is reportedly in talks with SoundCloud for a possible acquisition.

According to Financial Times, the move would pair two of the most used music services out today.

With the addition of SoundCloud, Spotify could get a service with social capabilities, something it’s lacking. In addition, there’s also the inclusion of additional media such as podcasts, videos, and more.

Going with the rumors of Spotify planning an initial public offering next year, bringing on board a company with more capabilities could show investors the potential of the music service to compete against those with a more sizable war chest.

Spotify has been trying to include more than just albums - which would give it a wider catalog of DJ sets, demos and other rough tracks. The move, which will bring two of the most used music services together, will give the duo leverage over Apple Music, Tidal and other services that try to lure users away with artist exclusives. You could listen to an in-development song and check out that artist's commercially available music immediately afterward.

Spotify has raised $1.56 billion in venture capital, including $1 billion in debt financing in March. SoundCloud has received more than $193 million.

Spotify and SoundCloud are yet to confirm or deny the reports.