Chance the Rapper sparks rumors of SoundCloud buyout
Update: It looks like Chance may have given SoundCloud a break.
Just had a very fruitful call with Alex Ljung. @SoundCloud is here to stay.
— Lil Chano From 79th (@chancetherapper) July 14, 2017
The US rapper has a good relationship with the troubled streaming platform.
“I’m working on the SoundCloud thing,” tweeted the Chicago rapper last night (July 13). Chance has a good relationship with SoundCloud, having released his Coloring Book album on the streaming platform for free. He also name-checked the company during his Grammy Award acceptance speech in February.
According to a report from TechCrunch on Wednesday, SoundCloud only has enough money left to keep operating for another 50 days. Last week, the streaming platform laid off 40% of its workforce and closed offices in London and San Francisco.
When SoundCloud was approached for comment by FACT, a representative for the company insisted it was “fully funded into Q4”, but that it was also in talks with potential investors. They said there were “a number of inaccuracies within the TechCrunch article” and that they “continue to be confident the changes made last week put us on our path to profitability and ensure SoundCloud’s long-term viability.”
TechCrunch’s Josh Constine, who wrote the article, has since issued a statement to Variety, in which he claims SoundCloud’s “supposed ‘corrections’ simply repeat what we did publish, and refute something we didn’t publish… TechCrunch stands by its reporting.”
In recent years, SoundCloud has reportedly experienced a number of cashflow problems, losing $44 million dollars in 2014 and $52 million in 2015. Various companies have been rumored as potential buyers of SoundCloud in past years, including Twitter, Spotify and Google.
FACT has reached out to Chance the Rapper for comment.