SoundCloud Nearing Deal With Major Labels for Pieces of Its Pie (Updated)
SoundCloud is going fully legit, with the company rumored to be selling the three major labels a 9 to 15 percent total stake, according to sources cited by Bloomberg. The deal has yet to be announced due to certain parties being closer than others in signing, Bloomberg's sources say. The deal would make it possible for the audio streaming company to continue letting its users stream music from the majors under licensing deals that would form a part of the overall deal.
Two sources confirmed to Billboard that the details of the report are accurate, and that the deal will be signed imminently.
Details of the deal including licensing rates and each major's exact ownership percentage were not available.
The three majors also hold a minority stake in streaming music service Spotify. Universal Music Group held a 14 percent stake in Beats Music, netting the company around $420 million following its acquisition by Apple.
Earlier this year, it was rumored the company was being circled by Twitter for an acquisition valued at $2 billion. The company's Series D funding round earlier in the year brought in $60 million, valuing the company at $700 million. Around the time of that Series D, rumors were already swirling around the majors taking a stake in the service.
SoundCloud was criticized earlier this month for its increasingly hardline tack on copyright, though much of the controversy was business-as-usual for major content destinations like YouTube or Vimeo.
SoundCloud and Warner Music Group refused to comment on the deal. Universal Music Group and Sony Music Entertainment did not immediately return requests for comment.
This article originally appeared on Billboard.com.