The new funding round valued the music streaming company at $150 million, compared with the $700 million valuation it was said to have received a year ago.
As part of the agreement, former Vimeo executives Kerry Trainor and Michael Weissman will become CEO and COO, respectively. If accepted, then the new investment - $169.5 million at a $150 million pre-money enterprise valuation - also closes tomorrow. "With Kerry's love of music and sharp business acumen, I know SoundCloud is positioned for continued success for many years to come".
Ljung who has responded quite candidly to SoundCloud's "death watch", will remain with the company he co-founded (with Eric Wahlforss) a decade ago, serving as chairman of SoundCloud's board. Though it would still be a tough struggle for corporate existence, SoundCloud claimed that they see a strong and independent future for the company. It turns out that, without a massive parent company like Google, it's quite hard for streaming services to turn a profit - especially when your CEO is too busy partying to pay attention. As the home to the world's most diverse creator community and the largest music streaming catalog available, SoundCloud lets you stream, share, discover and influence global music culture.
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It's thought that The Raine Group will likely play a hands-on role in setting SoundCloud's future strategic direction if the new financing deal goes ahead, utilising its experience as an investor in other media and web outfits.
SoundCloud, an online network for sharing and enjoying music, had been crashing. Chance and Young Thug recently shared their new song "Big B's" exclusively on SoundCloud after news broke of its turmoil in an effort to shift positive attention to the platform.
The backing also brings some new faces to SoundCloud. For more information, visit: soundcloud.com.
If SoundCloud doesn't get the funding, CEO Alexander Ljung reportedly told investors that SoundCloud won't be able "to continue as a going concern".
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