New Delhi: In a bid to make its service profitable and engage more users, Twitter has invested about $70 million in Berlin-based music service SoundCloud.
The microblogging service wanted to buy the music service a couple of years ago, but has now instead decided to invest in it.
According to a report on Re/code, Twitter's CEO Jack Dorsey has confirmed the investment but has not specified the details. People familiar with the deal note that the investment round will end up in the $100 million range, taking SoundCloud's valuation up at $700 million.
Dorsey said that Twitter has made an investment through Twitter Ventures to help support some of the company's efforts with creators, adding that SoundCloud's community-supported approach mirrors that of Twitter's in many ways.
Soundcloud, a platform that enables people to upload and share music and other audio files, further confirmed that Twitter had made the investment.
The microblogging site has previously attempted to make a foray into music with the launch of Twitter Music in 2013, which was closed a year later. At the time, the company said that it would look for new ways to bring music based content to the service.
A partnership between the two services could benefit both. For Twitter, an integration with SoundCloud would mean more user engagement and growth, while SoundCloud could use Twitter's user base to promote its newly launched service - SoundCloud Go.