The company could be out of money by the end of the year.

SoundCloud has almost exhausted its available financing and faces “significant obstacles” finalising its next round, sources claim.

A report at Digital Music News cites three individuals “close to the organisation,” who say that the company will require an emergency bridge from an existing investor or a bank within the next 4-5 months.

SoundCloud last year struck a deal with WMG in which the major got a five per cent stake in the company, but deals have yet to be agreed with UMG and Sony – something that is reportedly putting off potential investors. “Investors want to see what happens [with the majors] before they put more money into it,” one of the sources said.

The news follows confirmation from SoundCloud that it will be launching a subscription service, though it’s unclear exactly when it will launch or what it will entail.

 

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