The cash-strapped company may sell for $500 million less than investors thought it was worth a few years ago.
SoundCloud is willing to sell the company for $250 million and has also been trying to raise $100 million since last summer, say sources.
The company has been considering a sale for some time and in 2014 it was reported that Twitter was interested in buying the streaming service, but last year chose to invest $70 million in the platform instead.
Investors valued the company at $700 million in 2014, but according to Recode, sources now say that SoundCloud is reportedly considering bids “as long as they’re above the total investment it has raised to date – about $250 million.”
SoundCloud launched its subscription service SoundCloud Go in March 2016 and a few months later was rumored to be looking to sell the company for a massive $1 billion.
However, in January it was reported that the company posted a net loss of $52 million in 2015 and may “run out of cash” before the end of 2017.
FACT has reached out to a SoundCloud representative for comment.