SoundCloud Avoids Being Shutdown With New Investment, CEO Removal

Krales  The Verge

Reports say that SoundCloud's search for the funding necessary to secure its continued existence may be at an end.

The Raine Group, a boutique merchant bank, joined with the Singapore-based investment company Temasek, to infuse a $169.5 million investment round that has given SoundCloud a reprieve in the 25th hour. Ljung has been replaced by two former Vimeo employees: Kerry Trainor, the video site's former CEO, will act as chief executive while Michael Weissman will step in as chief operating officer. No word on Chance the Rapper's theorized involvement.

What are your thoughts on SoundCloud and the future of the service? In a note circulated to shareholders earlier this week (obtained by Axios) Mr Ljung said without the money Soundcloud would not be able "to continue as a going concern". "After a decade of balancing the roles of Founder, CEO and Chairman I'm excited to hand the CEO reins over to Kerry to allow me to fully focus on the role of the Chairman and the long-term".

Still, wherever the cash came from, it's good news for SoundCloud fans and users. A report surfaced shortly afterward speculating the company may not have enough funds to see it through the summer. But after taking years to negotiate deals with the major record labels, the extremely late $9.99 SoundCloud Go+ subscription service flopped.

Despite headlines about SoundCloud's "demise" or "collapse", the music streaming company is apparently sticking around for a while longer. By improving their tools, it can make more music creators subscribe to their plans to use their advanced toolkits.

The company says that it expects to generate more than $100 million in annual run-rate revenues this year. "SoundCloud can do more". According to Variety, SoundCloud raised approximately $170 million during the largest financing round in its history.

Raine has also invested in Vice Media, Imagine Entertainment, Matt Stone and Trey Parker's Important Studios, fantasy sports operator Draft Kings and C3 Presents, owner and operator of music festivals Lollapalooza and Austin City Limits.

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