SoundCloud Saved From Closure By $170 Million Investment

Marco Green
August 13, 2017

SoundCloud spent years negotiating with record labels to build a $9.99 per month subscription service to match Spotify and Apple, but the resulting product hasn't gained traction. Kerry Trainor, the former CEO for Vimeo, has taken over from founder Alex Ljung as chief executive, while Michael Weissman, who also held an executive role at Vimeo, has been name as the new chief operating officer for the company.

As Billboard reports, merchant bank Raine Group has teamed up with Singapore-based investment company Temasek to fire over a $169.5 million Dollars investment to SoundCloud.

The past year has seen the world's largest audio library SoundCloud battle to stay afloat in the market, but the future of the streaming platform seems secure, at least for now, thanks to a new investment deal.

The struggling audio-hosting startup SoundCloud has secured a financial lifeline, with two investors putting up nearly $170 million to help the company stay afloat, according to Billboard. Trainor said SoundCloud will continue to offer the suscriptions, but that it won't be the central focus of the company.

"If I could show to you the number of people who have been calling us, expressing fear about it going away, you would be shocked", said Fred Davis of the Raine Group.

Nevertheless, the investments from the Raine Group and Temasek mean SoundCloud will stay independent.

SoundCloud last reported some 170 million users.

"I look forward to fully dedicating my time to leading the board and helping drive SoundCloud's long term strategic vision, and forging strategic partnerships and connections with industry partners and our one-of-a-kind creative community", said Ljung in a statement this afternoon.

Other reports by Click Lancashire

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