Several major record labels are reportedly moving in on SoundCloud.
The digital streaming site is said to be close to a deal with labels like Universal Music Group, Sony Music Entertainment and Warner Music Group Universal Music Group, Sony Music Entertainment and Warner Music Group.
The deal would reportedly give the labels roughly 3 to 5 percent stake in the company, as well as a percentage of future revenue. In return, SoundCloud is said to avoid any lawsuits related to copyright violation.
The news about the deal comes just after it was reported that SoundCloud was allowing Universal Music to directly remove user's content and terminate accounts, which SoundCloud issued a statement about.
So far, no offical statement has been released regarding the deal with major labels, as some labels are said to be closer to signing than others.
[Via Bloomberg]