Google is now planning to acquire Spotify in a deal valued at roughly $41.1 billion in cash and equity.
The acquisition, first reported by the Wall Street Journal this morning, creates a clear frontrunner in the music subscription space. It would also give Google a massive edge over competitors like Apple Music.
According to research emerging this week, Apple Music now has more unique users than any other streaming music service. Apple’s rapid ascent may have rekindled the on-again, off-again acquisition talks.
The unexpected acquisition may also accelerate the upcoming combination of Google Music and YouTube. Currently, Alphabet and its Google and YouTube subsidiaries are struggling to create a strong, premium music streaming service. That just changed with the acquisition of Spotify, which is now reaching its 50 millionth paying subscriber.