Buying The Cloud?

Sources reportedly close to the matter told tech news site Recode the companies are in talks. If the agreement is approved, it would be a large acquisition for Twitter; SoundCloud was valued at $700 million in a funding round earlier this year.

The deal could expand Twitter’s reach and would give SoundCloud a new opportunity to sell ads.

It might also put pressure on SoundCloud to reach an agreement with major record labels, Recode speculated, as the company doesn’t currently have any deals and often gets criticized for streaming songs without licenses.