SoundCloud stays afloat with emergency investment, as CEO steps aside

Marco Green
August 11, 2017

The SoundCloud death watch has ended.

SoundCloud's shareholders have until the end of the day to approve a rescue plan for the flagging streaming music firm, according to Axios, which cites a memo seemingly sent to the company's investors earlier this week.

The company has secured the investment and Trainor has taken on the position of CEO while Michael Weissman has been named COO.

If the funding isn't accepted, founder and chief executive Alexander Ljung has suggested the company would not be able 'to continue as a going concern'.

SoundCloud, an online network for sharing and enjoying music, had been crashing. Trainor said this open artistic experimentation gives the platform a unique identity in the digital music space.

There's an insane amount of noise about SoundCloud in the world right now. If investors accept, $169.5 million will be injected into the company. He offered no specifics. Though the exact investment number is not mentioned in the announcement, Ljung says it is "the largest financing round in the history of SoundCloud". The company's financial woes became apparent when it fired 40 percent of its staff last month.

As we wait with bated breath, it's as good a time as any to revisit our favorite Soundcloud discovery.

Ljung declined to talk about contact from musicians throughout SoundCloud's "death watch". SoundCloud's future appeared in serious doubt. In other words, if the older investors don't approve of the new ones-or in other words, vote "yes"-SoundCloud is probably done for". The round reportedly comes in at $US170 million (£130 million).

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER