If new information is any indicator, SoundCloud‘s immediate dilemma might have been solved. Sources close to the music streaming platform have revealed that two firms will collectively acquire a majority share in the company.
A week ago, it was anonymously revealed that two angel investors were in talks to purchase the company. A new report by Music Business Worldwide confirmed those entities to be angel investors The Raine Group and Temasek Holdings. The two companies reportedly valued SoundCloud at $300 million, meaning that their combined equity in the company will total over $150 million.
Although SoundCloud has struggled to monetize its business model throughout its ten years of operation, recent developments rendered it a subject of even greater scrutiny. Last month, company co-founder Alex Ljung announced that they would lay off 40% of their staff, and afterwards it came to light that even afterwards their budget would only last them until the fourth quarter of 2017.
In addition to its headquarters in NYC, The Raine Group has offices in San Fransisco, Los Angeles, London, Shanghai and Mumbai. Vice Media, Dubsmash and Draft Kings are among its ventures. Temasek Holdings, on the other hand, is an investment firm based in Singapore with a predominantly equity portfolio.
SoundCloud has encountered trouble finding investors over the years. In 2014 merger talks fell through between the platform and Twitter, and then last year the same happened with Spotify, who have seen their own fair share of obstacles. The former company had valued SoundCloud at $1 billion during their negotiations, and the latter at $700 million.
Neither SoundCloud, The Raine Group nor Temasek Holdings have issued an official statement regarding the acquisition at this time.
Source: Dancing Astronaut