News - 26/02/2018

Twitter writes off most of its investment in streaming platform SoundCloud

Twitter writes off most of its investment in streaming platform SoundCloud

Microblogging giant Twitter, only a year and a half after investing $70m in music-streaming service SoundCloud, changed its plans.

Indeed, Twitter has written off $66.4m of that investment, according to its latest annual report. The document says (actually without naming SoundCloud):

In the year ended December 31, 2017, the Company determined that the estimated fair value of a cost-method investment, valued using Level 3 inputs, was below its carrying value and that the carrying value of this investment was not expected to be recoverable within a reasonable period of time.

As "Music Ally" commented, Twitter might prefer to have written off $66.4m at this point than to have acquired SoundCloud – as was rumoured in May 2014 – and thus been responsible for the company’s entire financial situation.

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