Google are reportedly looking to expand their online portfolio by buying music streaming service Soundcloud.
As Music Business Worldwide reports, there are “high-level rumours” that Google is lining up a $500m bid for the service, which allows artists to post their music online for free.
Spotify turned down the opportunity to buy the company last year, after SoundCloud put forward an asking price of $1bn.
The Berlin based company boasts over 175 million users, but it’s currently running at a loss, and business insiders are confident that the company can now be acquired for closer to $500m.
While the $1bn asking price also put Twitter off acquiring the company in 2014, Google could now acquire SoundCloud for a deflated price.
The company is now believed to be “the current favourite” to purchase the company in the new year.
It’s also been revealed that Record labels Universal Music, Sony Music and Warner Music all own substantial shares in the company and would recieve a windfall of around $45m following a sale.
SoundCloud was originally formed in Sweden in 2007, and has gone on to become one of the biggest streaming services on the internet.