SoundCloud is saved after receiving new funding - NME
SoundCloud’s recent troubles appear to be at an end after receiving funding and announcing the succession of a new CEO.
The future of the online streaming platform has been under question for some time now, with SoundCloud even laying off 40% of its employees and closing two offices as recently as last month. It was reported earlier this week that huge stakes of the company were set to be sold, however, meaning that SoundCloud may be able to keep operating.
Now, the acquisition of a major stake in SoundCloud by Raine Bank (a New York company who have previously invested in the likes of Vice Media) and investment group Temasek has been confirmed, with the total investment reaching $169.5 million.
In addition, Chief Executive Officer of SoundCloud Alex Ljung is set to step down, with Billboard reporting that former Vimeo CEO Kerry Trainor looks set to replace him.
Late last year, the talks between SoundCloud and Spotify regarding the acquisition of the free music streaming service fell apart. The deal was said to be worth £535 million.
A source reportedly said that the company ultimately walked away because it feared that an acquisition could negatively impact its IPO preparation.
Earlier this year, however, SoundCloud was reportedly considering selling for considerably less. The service, valued at $750 million in 2014, were reportedly looking to secure between just $100 million (£76 million) and $250 million (£188 million) in order to keep going.