Back in September, rumors emerged that Spotify was in talks to acquire SoundCloud. This news came just months after a report revealed SoundCloud had lost $70 million in just two years and the company’s directors ominously noted that “there are material uncertainties facing the business.”
As it turns out, those material uncertainties were enough to kill any deal that may have been imminent. Citing a Spotify source “familiar with discussions,” TechCrunch now reports that the popular streaming service has dropped its bid to acquire SoundCloud. The source clarified Spotify’s reasoning, saying that the company “doesn’t need an additional licensing headache in a potential IPO year.” Though Spotify has yet to announce its plans to go public, potential investors are optimistic that an IPO may come at some point in 2017.