Sky News reports that The Raine Group and Singaporean state investment fund Tamasek are interviewing banks in order to auction off SoundCloud.
The music streaming service’s earnings before interest, taxes, depreciation and amortization (EBITDA) is around $2.1 million. This gain mirrors their near $32 million negative loss reported in 2022. A recent insight from Music Business Worldwide shows the company’s annual profitability sitting at a $310 million revenue.
In 2017, Raine Group and Tamasek acquired majority stake in Soundcloud for $170 million. At the time, the sale valued the company at around $300 million. In February 2020, it also received $75 million in investment from SiriusXM, making the satellite radio company a minority shareholder.
May of 2023 saw an 8% cut in their global staffing. Current CEO Eliah Seton touted the cuts as a way to “ensure the health of our business and get SoundCloud to profitability this year.”
The general sale of SoundCloud will not begin for “some months,” according to the Sky News report.
About SoundCloud
Since 2007, SoundCloud has provided a platform for users to upload and share music. Their user base consists of over 40 million accounts sharing over 320 million tracks to date.
SoundCloud’s impact on the music industry is strong, with its platform starting new genres and the music careers of modern artists worldwide. The company’s business mainly centers around subscription payments from listeners and ads, and creator-oriented platforms like their SoundCloud for Artists service.
Find more information on SoundCloud’s website.
