SoundCloud lives with last-minute investment deal but CEO steps aside

Yolanda Curtis
August 11, 2017

A company statement announced: "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 - musicians, DJs, producers, labels, managers and podcasters - that fuel SOUNDCLOUD's one-of-a-kind, creator-driven listener experience".

Last week, Music Business Worldwide broke the news that struggling streaming platform SoundCloud had received investments from two investment firms in The Raine Group and Temasek.

SoundCloud, just like music, will continue to evolve, but importantly, both will always be a key part of life. It was reported earlier this week that huge stakes of the company were set to be sold, however, meaning that SoundCloud may be able to keep operating. "In the event that the transaction does not close and in the vent SoundCloud does not otherwise obtain additional funding, based on current cashflow forecasts, SoundCloud faces liquidity concerns in the near term".

Now, founder Ljung will step away from his role as CEO to focus on his role a chairman of the company.

SoundCloud's new CEO, former Vimeo chief Kerry Trainor. Last month, the company was forced to lay off 173 employees, which was about 40 percent of its workforce.

Under the deal, the new investors would be Raine Group and Temasek, as well as existing backers Union Square Ventures, Doughty Hanson and Atlantic Technology. It also reportedly sought $1 billion in an acquisition deal a year ago, as some companies apparently showed interest.

Recently you heard me say SoundCloud isn't going anywhere. Today it's a platform essential to the shaping of songs, artists, genres and global culture.

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

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