Why Is Sirius XM Investing in SoundCloud?
The push to matter in streaming didn't end with Sirius XM Holdings (NASDAQ: SIRI) acquiring Pandora last year. The satellite radio giant is turning heads this week after announcing a $75 million investment for a minority stake in SoundCloud. Sirius XM will also be gaining a pair of seats in the SoundCloud boardroom.
If you know any aspiring singers or musicians there's a good chance you're familiar with SoundCloud. It's the world's largest open audio platform, even though you may not realize that when your friends keep pushing SoundCloud links your way to check out their tunes. It may seem odd to buy into the hub where garage bands and basement DJs try to get discovered, especially just 12 months after closing on its $3.5 billion deal for Pandora. The reason lies in the volume knob, because sometimes you just have to pump up the volume.
Image source: Sirius XM Holdings.
Source Fool.com
