Twitter has reportedly invested around $70m in German music sharing service SoundCloud in an agreement that could help both companies attract more users.
Twitter chief executive Jack Dorsey, confirmed the company’s investment in a statement to the technology news site Recode.
Dorsey said: "Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators.
"They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways."
SoundCloud, launched in 2008, gives users access to the world’s largest community of music and audio creators.
It allows users to upload, record, promote and share their originally-created sounds. The free service is claimed to have 175 million users.
In 2014, Twitter considered an acquisition of SoundCloud, but cancelled the plans.
Since then, SoundCloud has signed new licensing agreements with several companies and publishers.
In December 2014, SoundCloud raised $150m in new funding round, making its entry into the billion-dollar club. Following the funding round, the valuation of the company was expected to top $1.2bn.
SoundCloud posted nearly $44m in losses in its financial results for 2014, released earlier this year. Last year, the company raised $77m in financing.
Twitter’s latest investment was part of a funding round estimated to be in the range of $100m, which would value SoundCloud at around $700m.
In a statement, a SoundCloud spokeswoman said the investment from Twitter would allow the company to remain focused on building value for creators and listeners alike, and to continue the global rollout of several of its initiatives.
