“The investment will ensure a strong, independent future for SoundCloud.”
SoundCloud has secured a crucial $169.5 million investment deal from global merchant bank The Raine Group and Singapore-based investment company Temasek that will enable it to stay afloat.
Writing on its blog today (August 11), the cash-strapped streaming platform said “the investment will ensure a strong, independent future for SoundCloud, funding deeper development and marketing of its core tools used by millions of audio creators.”
The streaming service has also revealed plans to replace long-time CEO Ljung – who has headed up the company since 2007 – with “veteran digital media operator” Kerry Trainor. Michael Weissman joins the team as Chief Operating Officer, while Ljung will take on a new role of Chairman of the Board.
According to Variety, the new investors will acquire more than 50 per cent of the company. Last month, SoundCloud terminated the contracts of 173 staff members amid reports that it only had enough money to stay afloat until Q4, which begins on October 1. Company co-founder Alexander Ljung later issued a statement denying the claims.
SoundCloud’s financial troubles have been widely reported over the past few years. In 2016, it emerged that the company lost $44 million dollars in 2014, while this year, reports showed that it suffered a $52 million loss in 2015.
FACT has reached out to SoundCloud for comment.