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After months of speculation surrounding the service’s future, NME reports that Soundcloud may yet be able to stay afloat, amid reports of new, massive investment.
Earlier this year, Soundcloud were forced to close down two of their offices, and lay off a reported 40% of their entire staff, cutting the workforce from 420 to 250, prompting many to fear for the streaming service’s future in a major way. Soundcloud has been responsible for some of music’s biggest breakthrough acts in recent years, with the likes of Kehlani and Bryson Tiller starting their rise to success on the website.
Now, however, Bloomberg reports that the company is close to selling off huge stakes to stay in business. The investment comes from the New York-based Raine Group, a boutique bank, who have previously had ties to the likes of Vice Media and Singapore’s Temasek Holdings. If all goes well, it is though that it could be a matter of days, rather than weeks, before a deal is announced.
Although no official figure has been mentioned yet, it is thought that it is substantially more than was expected, with Soundcloud reportedly willing to settle for a substantially low offer earlier in the year. It’s remarkable to think that the streaming service was valued at $750 million dollars at it’s peak in 2014, and are looking for a figure of between $100 million (£76 million) and $250 million (£188 million) in order to stay afloat.
Despite it’s often-disastrous financial situation, big companies clearly still see value in Soundcloud, best exemplified in 2016, when Spotify were willing to drop £535 million to take the company over, before talks fell apart.