Not a 'money milking machine'

Proving that the digital music industry is far from being a money milking machine, Twitter recently wrote off the $70 million USD investment it made in Soundcloud. In 2016, Twitter’s ventures unit injected the staggering sum of money into the free music streaming platform that at the time was valued at $700 million. But in its 2017 annual report, Twitter is writing off the huge investment because the money put in is ‘not expected to be recoverable within a reasonable period of time.” Although the loss is not small, the social media platform can afford to take the loss after generating $2.4 billion USD revenue, and $4.4 billion USD in cash and short-term investments by the end of 2017.