Spotify is in advanced talks with SoundCloud for a possible buyout.

Reports in July claimed that founders and investors of the German streaming service were considering options such as an acquisition worth $1 billion. SoundCloud is considered as the "YouTube of Music." The platform allows users to record, upload, promote, and share their audio files and recordings.

SoundCloud has the biggest streaming catalog totaling about 125 million, while Apple and Spotify only carry approximately 30 million. About 12 hours worth of recordings and music are reportedly uploaded to SoundCloud every minute by users.

SoundCloud recently launched a paid streaming music service called "Go."

Music streaming companies are facing strict competition in the market especially in the presence of behemoths like Apple. Several mergers and buyouts have already taken place in recent years including Pandora and Rdio, and Apple and Beats.

Meanwhile, Amazon set to unveil a stand-alone subscription service.

Amid the speculations about the upcoming deal, a Spotify representative has refused to comment. The "SpotiCloud" merger is expected to shake up Apple because of the radio feature and the immense compilation of music available on SoundCloud.