Twitter has reportedly invested $70 million (£49 million) in SoundCloud.
In a statement given to ReCode, CEO Jack Dorsey said: “Earlier this year we made an investment in SoundCloud through Twitter Ventures to help support some of our efforts with creators.
“They’ve been great partners of ours over the years and their community-supported approach mirrors ours in many ways.”
The deal is reportedly worth $70 million (£49 million) at a $700 million (£493 million) valuation.
“We can confirm that Twitter has made an investment in SoundCloud,” said SoundCloud in a statement. “Both companies facilitate and inspire contemporary culture to happen in real time while reaching millions of people around the world.”
“This investment will enable SoundCloud to remain focused on building value for creators and listeners alike, and to continue the global rollout of many company initiatives such as our recently launched subscription service, SoundCloud Go.”
The company launched Go in March this year as an attempt to compete with apps including Spotify, Apple Music and Tidal.
Meanwhile, Twitter has been attempting to boost its lagging finances. It recently experienced a net loss of £62 million, and share prices dropped around 67 percent in 2015.