SoundCloud confirms both new funding and new management

Terry Joseph
August 17, 2017

As reported last week, the company is said to have circulated a "do-or-die" reorganisation proposal to shareholders in order to secure funding from boutique merchant bank The Raine Group and Singapore's state investment firm Temasek.

While the new investment has resulted in a change in management - and a considerable write down of the digital company's valuation - it will bring to an end weeks of speculation that the end is nigh for all things SoundCloud.

SoundCloud was thrown a $169.5 million lifeline on Friday, which is a pretty nice lifeline to have, especially when you've been drowning for several months now.

Co-founder Alexander Ljung is handing over the reins as chief executive to Kerry Trainor, the former chief executive of online video service Vimeo, the company announced. Kerry Trainer is joining as CEO, while Mike Weissman will become chief operating officer.

The platform's co-founder also shared what this investment meant.

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Whether or not this detail is compatible with SoundCloud's reputation as an "independent" and artist-driven player in the music streaming space remains to be seen.

Soundcloud will now need to look at reducing costs and doing more to monetise the service which, according to the firms latest publicly available figures, has more than 40 million users. Although Ljung has been the CEO and chairman of the company for almost a decade, the founder will now simply just oversee the company as a chairman. It's a similar business model that Trainor built at Vimeo, which is owned by IAC/InterActiveCorp. This, I know, sets us up as an even greater team for the decade (s) to come.

In a blog post, Ljung assured concerned users the site wasn't going offline.

SoundCloud was launched in 2008 and has never said how many paying subscribers it has, but launched a budget subscription package for hoping that will have more listeners to convert from its free service, which that also did not do well.

Other reports by Free-Prsite

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