Google shopping for a streaming music service?

Google shopping for a streaming music service?
Now that Apple has dipped into its reserves to buy Beats Audio, which includes the Beats Music streaming service, Google is feeling a little envious. Sources in the music business say that the search giant is having talks with banks on the future of Google's streaming music business. Google does offer its Google Play Music All Access service, which is about to be challenged internally by YouTube. The latter is expected to launch its own "Music Pass" streaming music service in October.

There is some speculation that Google will make a run at Spotify. With 10 million subscribers and a valuation of $4 billion, Spotify is set to go public this fall. But with its stock priced at $553 a share, Google has a high-priced currency that it can use to purchase Spotify before the company's stock trades. If Google waits until Spotify's IPO to make a move on the company, the potential price could be much higher and more than Google is willing to pay. 

Another big name in the streaming music business that might be easier for Google to purchase would be Pandora. Already a public company, Pandora currently has a market capitalization of $5.1 billion. Figure a 25% to 40% premium for Pandora stockholders, and a purchase of the music streamer would certainly be a manageable transaction for Google.

source: NYPost

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26 Comments

1. j_scorp

Posts: 61; Member since: Oct 22, 2013

I'm buying Pandora stock ASAP. Hedging my bets.

10. sgodsell

Posts: 6669; Member since: Mar 16, 2013

Google you got the money. Just buy both Spotify and Pandora. ;-)

2. PBXtech

Posts: 1032; Member since: Oct 21, 2013

Develop your own. Google did an outstanding job with Google Now, put that same effort to making their own music service just as good. And the more of these companies that get purchased, the less options we have as consumers.

16. phonetekmek

Posts: 70; Member since: Oct 04, 2013

Google has Play Music All Access and has plans to do another competing service on youtube. But if you can instantly get millions subscribers with a purchase why not. Google has no obligation to worry abouth consumer options, their job is to please the investors and make sure they have returns on their investments. Same with Pandora. Spotify being private is for the benefit off the owner. Apple could've easily have built their own streaming service and high end headphone line, but the easier choice was to buy Beats.

22. PBXtech

Posts: 1032; Member since: Oct 21, 2013

I know, I used their music service when it was introduced. As I said though, Google buying another service already in existence just lowers the variety consumers have to choose from. As for Apple, I'd bet my money they purchased Beats more for the brand recognition than the actual service. Their own music service wasn't doing as well as they had expected so an injection of Beats users, and more importantly, the hardware was a draw for the purchase to be made.

3. Antimio

Posts: 313; Member since: Nov 11, 2013

Spotify is a no brainer.

4. palmguy

Posts: 952; Member since: Mar 22, 2011

you can't go wrong with Pandora or Spotify

5. palmguy

Posts: 952; Member since: Mar 22, 2011

you can't go wrong with Pandora or Spotify

6. HTCOE

Posts: 650; Member since: Nov 20, 2011

Spotify or iHeart Radio is a no brainer

7. Mxyzptlk unregistered

No no no. Google can keep their hands off iheart radio. I don't want it butchered like they did with youtube.

8. Antimio

Posts: 313; Member since: Nov 11, 2013

youtube is awesome, man! if you have a better idea, well, i would like to know!

9. XperiaFanZone

Posts: 2277; Member since: Sep 21, 2012

YouTube is awesome. But Google shouldn't have owned it.

11. PBXtech

Posts: 1032; Member since: Oct 21, 2013

Not a fan of the advertisements in YouTube.

17. phonetekmek

Posts: 70; Member since: Oct 04, 2013

So what revenue stream would you have liked youtube to pursue? Subscription based?

21. PBXtech

Posts: 1032; Member since: Oct 21, 2013

See comment 13 below.

19. Gsizzle

Posts: 39; Member since: Aug 19, 2013

That's why you use Adblock

18. phonetekmek

Posts: 70; Member since: Oct 04, 2013

iheart is owned by ClearChannel if I am correct. I doubt they will sell.

12. HTCOE

Posts: 650; Member since: Nov 20, 2011

If you owned youtube would you leave out ads? think about it deeply and iheart radio is a way for google music to access vehicles via radio (including ads or none if you ditch traditional satellite radio and subscribe to some google loon radio blah blah blah)...you know if apple does it first they will somehow with the beats aqcuisition have it where after listening to a track in your car you can purchase it right there and store it on the "whatever they will call it" integrated with their car play and etc. imagine controlling the radio hits with your service did i say too much....ooooops

13. PBXtech

Posts: 1032; Member since: Oct 21, 2013

YouTube doesn't need ads before the videos, or during either (especially). Ads on the pages to the side are more than enough.

25. blazee

Posts: 414; Member since: Jan 02, 2012

The ads on the video bring profit to video creators. They can opt out of the ads if they want to

14. GreekGeek

Posts: 1276; Member since: Mar 22, 2014

Nooooooo not Spotify, for the love of God! Google will torment the free user base if ever this happens

15. galanoth

Posts: 428; Member since: Nov 26, 2011

I say Google just buy both. Integrate Pandora radio algorithm into Play Music Radio. And Play Music will get all the Spotify user base. They have the cash. They would be the biggest name in streaming music. It wouldn't be a monopoly because of Apple/Beats, Rdio, iHeartRadio.

20. phonetekmek

Posts: 70; Member since: Oct 04, 2013

I like the Play Music All Access service. I have over 3000 songs uploaded, access to their huge catalog and their radio service (which is admitantly just ok). I signed up with the free trial and have the old 7.99 monthly fee. If they had the Pandora algorithim it would be the best service hands down. Radio is the only way that it is lacking. Or simpily steal the best talent from Spotify and Pandora and have them work for you.

24. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Spotify has a better radio service than Pandora. When I pick an artist station, about 20% of the songs are that artist. When I do the same with Spotify's radio, it's more like 80%.

23. cdgoin

Posts: 614; Member since: Jul 28, 2010

They buy Spotify I will leave..

26. dorian827

Posts: 161; Member since: Jul 28, 2012

Hopefully they purchase Pandora or something else. Spotify is such a GREAT service provider stand alone. Google once they purchase something seem to attach a bunch of unnecessary components and requirements to continue using the product. I'll definitely be leaving Spotify Premium in that case

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