Photo of Spotify CEO Daniel Ek by Michael Loccisano/Spotify
It appears Spotify is no longer in the running to acquire SoundCloud.
TechCrunch reported on Thursday that while the music streaming giant had been in talks with SoundCloud, discussions of a deal "died" this past week, according to sources with knowledge of the ongoing proposals.
The news follows a report from back in September from the Financial Times claiming Spotify had offered to buy SoundCloud, valuing the audio platform at around $700 million. It seems the price tag was ultimately the deal breaker.
Spotify has long been said to be plotting to go public. And its decision to pass on a SoundCloud option is another signal an IPO in 2017 is extremely likely.
As TechCrunch also pointed out, SoundCloud did see a 43 percent revenue spike to $28 million this year, but it still has yet to be profitable.
A rep for Spotify didn't immediately respond to a request for comment.