The company now focuses its operations on Berlin and NY. Former Vimeo CEO Kerry Trainor is also taking over as CEO, with founder Alex Ljung stepping down, and former Vimeo executive Michael Weissman will now be Soundcloud's chief operating officer. Potentially new investors include Raine Group and Temasek.
SoundCloud has closed a reported $169.5 million emergency in funding that allows the struggling streamer and audio hub to stay online. SoundCloud's earlier backers had to accept a mark down on those earlier investments as part of the deal.
SoundCloud is a catalyst for creativity, powered by a connected community of creators, listeners, and curators who are on the pulse of what's new, now and next in music and creative culture. Raine, a boutique investment bank, has also backed Vice Media, DraftKings and Imagine Entertainment. As SoundCloud grew in popularity, major labels and publishing companies began noticing, for example, the many DJ mixes taking advantage of their intellectual property. It's a similar business model that Trainor built at Vimeo, which is owned by IAC/InterActiveCorp. Trainor said this open artistic experimentation gives the platform a unique identity in the digital music space. In the press release, SoundCloud said it has a $100 million annual run-rate for 2017. Now, we have slightly more information about what to expect.
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This year Soundcloud was facing a huge dilemma.
Ljung says if the SoundCloud rescue package isn't approved, more of his employees will leave and the company won't have enough money to survive. Clive Davis has a storied history in the music industry having held plenty of executive posts such as the founder of Arista Records, former CEO of RCA Records, president of Columbia records, and CEO of BMG North America. There are still tens of millions of users that use SoundCloud's services, and it is able to compete with its rivals.