SoundCloud secures $75M Investment from Pandora Owner Siriusxm
SoundCloud has just announced that it has secured $75 million investment from SiriusXM. SiriusXM recently acquired another leading music streaming platform, Pandora, last year in a $3.5bn all-stock transaction.
Sirius’s investment in SoundCloud comes three years after the streaming platform attracted $170m in investment from Raine Group and Temasek. SiriusXM will take a minority stakeholding in SoundCloud as a result of the $75m investment.
SoundCloud says it will use this additional investment to “accelerate its product development and enhance the services that fuel its global community of creators and listeners”.
“SoundCloud’s three consecutive years of strong financial performance directly reflect the success of our creator-led growth strategy,” said Kerry Trainor Chief Executive Officer, SoundCloud. “We have an exciting roadmap focused on deepening the connections between creators and listeners that fuel creator discovery, career growth and the evolution of music culture on SoundCloud. We’ve built a great relationship with SiriusXM through our highly successful Pandora ad sales agreement, and their investment gives us added capital flexibility to accelerate our vision and take advantage of strategic opportunities as they arise.”
Jim Meyer, Chief Executive Officer of SiriusXM, said: “SoundCloud’s unique platform serves a vital role in today’s music ecosystem where new artists are discovered and build their fan base, and established artists experiment and connect directly with their fans in highly effective ways. We admire SoundCloud’s loyal and growing audience, its offering for creators, and its reputation and popularity in global music communities. We believe this is another opportunity to continue creating value for SiriusXM stockholders by investing in expanding digital audio platforms.”