If new rumors are any indicator, there may be a light at the end of the tunnel for SoundCloud. The future of the music streaming service looked bleak after its owners announced that they would lay off 40% of the company’s staff earlier in the month. Now, they’re apparently nearing the end of deals which would transfer a dominant share of the company to new ownership.
Anonymous sources told Bloomberg that SoundCloud was close to finalizing agreements which would designate two separate firms majority stakeholders in the company. The sources did not disclose any further details on either entity or provide rough figures for the amounts in question. They did, however, point out that both deals could still potentially fall through.
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SoundCloud has struggled to monetize its business model since its 2007 inception, but the past couple of weeks saw its fate hang in the balance more than ever before. Although company co-founder Alex Ljung had issued a statement meant to subdue the looming media circus, spokespeople did not directly deny claims that the company’s remaining budget would only extend to the fourth quarter of 2017.
Amid the madness, cloud-based file transfer platform WeTransfer made a proposition to SoundCloud’s recently laid-off employees. It offered them $10,000 to “start something new” that might fill the void left by the floundering streaming service.
Spokespeople on behalf of SoundCloud have neither confirmed nor denied the rumors at this time.
Source: Bloomberg
