Deals

Spotify buys Echo Nest, keeps service alive for competitors

spotify
Image Credit: Spotify

Music streaming giant Spotify has acquired The Echo Nest, a developer-centric music discovery service.

This deal brings Spotify and The Echo Nest even closer; the nine-year-old company already powered Spotify’s radio service. Spotify CEO Daniel Ek claims this deal will help his company build “the best music intelligence platform on the planet.”

According to the release, Spotify also sees The Echo Nest as its ticket to strengthening partnerships with other brands:

The addition of The Echo Nest to Spotify will also strengthen Spotify’s ability to help brands and partners build amazing music experiences for their audiences.

Aside from Spotify, existing Echo Nest customers include companies like Rdio, Vevo, MTV, and Twitter. This acquisition certainly gives Spotify leverage over those competitors, although Spotify claims that The Echo Nest API will not be shuttered.

Following the acquisition, The Echo Nest will not leave its Somerville, Mass. headquarters, and its San Francisco, Calif. offices will continue to operate. The Echo Nest investors include Matrix Partners, Commonwealth Capital Ventures, and Argos Management.