SoundCloud to be Saved for $300 Million
According to reports on MBW, SoundCloud is about to be saved in the nick of time by a pair of investment funds.
Very solid industry sources told the website that merchant bank The Raine Group and Singapore state investment company Temasek Holdings will each acquire stakes in the business imminently.
Those stakes are understood to jointly amount to more than 50% of SoundCloud’s equity. In other words, the two finance houses are about to take control of the platform with Raine Group and Temasek’s investments both value SoundCloud at $300m in total, the two parties’ combined exposure sits somewhere around $150m – $160m.
Recently it was revealed that the loss-making SoundCloud would not last long into the second half of 2017, when it cut 40% of its employees and without such investments – which come at a far lower valuation than that the company has bandied around the market in the past few years.
In 2014, the firm’s co-founders – Alexander Ljung and Eric Wahlforss – were trying to sell it to Twitter for $1bn. Talks between the two parties eventually fell apart, but Twitter did come back to the table in summer last year to make a $70m investment – a deal which apparently valued SoundCloud at $700m.
Like most of the music industry, we are hopeful that this deal will go through and finally get SoundCloud back on the right track and in the meanwhile make sure you head over to our channel for all our premieres, mixes and free downloads here