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.

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.

SoundCloud’s Angels

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