Two investors have saved SoundCloud in buying controlling stake for $150 million
Unless you have been living under a rock for the past few months, you know that SoundCloud has undeniably rocky road in terms of securing its future. The music company was reportedly set to be bankrupt by the end of the summer, which left the entire music world scrambling. Last month, they cut over 40% of their global employees and closed down offices in both San Francisco and London.
Now, it appears that SoundCloud may have found a new life after a report by Music Business Worldwide states that two angel investors have purchased a controlling stake in the company for a massive $150 million at a $300 million total valuation. The company was valued at nearly $1 billion in 2014 and $700 million last year, so it is interesting to see how quickly that number has plummeted. The two groups, The Raine Group and Temasek Holdings, will own just over 50% of the Soundcloud entity, which will allow them to make some important decisions regarding the company’s future moving forward.
Let us know what you think of this news and if SoundCloud can return to prominence once again.