SoundCloud could be headed for a $1.2bn valuation, if there's any truth in rumours of it looking to raise $150m in new investment.

Last year, it raised around $60 million at a $700 million valuation in a round led by Institutional Venture Partners and the Chernin Group.

The potential of new investment comes at a key time for the music streaming platform - it has been in discussions with labels to transform it into a licensed service in time for ...