Spotify has been rumored as a buyer for SoundCloud for month, but it seems that the takeover is a no-go. At least for now. TechCrunch reports that it spoke to a source at Spotify who said the potential acquisition went cold last week. With the streaming company laying groundwork for an IPO some time next year, the source said Spotify “doesn’t need an additional licensing headache.”
The story of Spotify working towards an IPO is even longer than the one about it buying SoundCloud. The company hasn’t made any formal statement about whether it plans to go public in 2017, but several of its moves over the course of 2016 have pointed to that time nearing. In March, Spotify raised $1 billion in a debt offering with provisions related to a future IPO. Paul Vogel joined the team as head of investor relations in June. And, related to the rationale given by TechCrunch’s source, Spotify has been pushing hard to sort out its licensing deals, which would help the transition to going public smoother.