Earlier this month, Spotify announced that they have 40 million paid subscribers (more than double Apple Music's 17 million) and now it appears they're looking to bolster their lead by potentially buying SoundCloud. Financial Times reports that the two companies are currently in "advanced talks" about an acquisition.

FT reports that Spotify viewed SoundCloud as a threat as long as they were able to offer a cheaper alternative to Spotify's $10 per month subscription service. That threat was reduced when SoundCloud rolled out a similarly priced $9.99 SoundCloud Go subscription service in March, but their active 200 million+ user base is likely still an attractive asset in the eyes of Spotify.

After SoundCloud raised $100 million from a group of investors (which included Twitter) in June, Spotify showed interest in an acquisition, but those talks fell apart due to an asking price that was too high, FT reports. Now, it appears those talks have reignited.

This news comes as Spotify gears up for its initial public offering in 2017, hoping to live up to its $8 billion valuation.