SoundCloud Talks Deal With Record Labels To Avoid Suit

Music sharing service SoundCloud is on the cusp of a deal with the largest record labels in the music business. Universal Music Group, Sony Music Entertainment and Warner Music Group agreed to not sue the Berlin-based startup for copyright violations and allow it to continue streaming to its 250 million listeners. In exchange, SoundCloud will give each record label a stake in the startup. The two sides are discussing the exact share, but it is expected to land between three and five percent for each record label. The record labels may also demand a revenue split. SoundCloud was valued at about $700 million earlier this year. It was also approached by Twitter for a possible acquisition, which it turned down.