Online audio platform SoundCloud is reportedly on track to sign deals with a number of the world's biggest record labels in exchange for avoiding legal issues over copyright violations.
According to Bloomberg, SoundCloud, founded in 2007, are in talks with Universal Music Group, Sony Music Entertainment and Warner Music Group for licenses that will allow the German-based company to continue to stream music released through these labels, without the threat of legal action.
It is alleged that SoundCloud are offering the three companies between three to five percent of their stake, as well as a percentage of future revenue made. It is believed SoundCloud is currently worth around $700 million.
The platform does not have a broad music catalogue in the same vain of Apple or streaming services like Spotify as they are limited by what the record companies allow to be uploaded to the site.
