SoundCloud Owners could sell the Music Service for $1 Billion
Berlin-based music-streaming service SoundCloud is exploring strategic options that could lead to a sale, Bloomberg reported.
The founders and investors over at SoundCloud are apparently exploring options that could lead to a sale of the business. Bloomberg reports that the sale could lead to the company being valued at $1 billion. Investment firm Doughty Hanson & Co., are exploring strategic options for the company that could lead to a sale, said the people, who asked not to be identified as the discussions are private.
A sale is apparently just one of many options the company are considering in order to boost profits and revenue from their 175 million users after launching their premium platform ‘Soundcloud Go’ earlier this year.
The owners have had trouble finding a buyer willing to value the company at $1 billion so far, two of the people said. SoundCloud raised $70 million from Twitter Inc. in June, part of a $100 million funding round that priced the company at $700 million, a person familiar with the matter said at the time.
In 2014, the last year that SoundCloud publicly reported its accounts, sales rose 54 percent to 17.3 million euros ($19 million) from a year earlier. The operating loss at the time was 39 million euros, widening from 21.3 million euros in 2013.