SoundCloud Saved From Closure By $170 Million Investment

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"As I said, SoundCloud is here to stay".

In a press release SoundCloud revealed the new deal with global merchant bank The Raine Group and Singapore investment firm Temasek, worth just shy of $215 Million AUD.

The struggling audio-hosting startup SoundCloud has secured a financial lifeline, with two investors putting up nearly $170 million to help the company stay afloat, according to Billboard.

"SoundCloud is the largest open audio platform in the world", Trainor tells Billboard. At that time Co-founder Alex Ljung said: " we continue to be confident the changes made last week put us on our path to profitability", and then fired 173 staff and said it was closing its London and San Francisco offices to focus on Berlin and NY.

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The announcement also included some new figures: SoundCloud says its total revenue has "more than doubled, to a more-than $100m annual run-rate this year", while its catalogue has now increased to more than 160m tracks. Kerry Trainor, the former CEO for Vimeo, has taken over from founder Alex Ljung as chief executive, while Michael Weissman, who also held an executive role at Vimeo, has been name as the new chief operating officer for the company.

As to why he is stepping down, Ljung said: "After a decade of balancing the roles of founder, CEO and chairman I'm excited to hand the CEO reins over to Kerry to allow me to fully focus on the role of the Chairman and the long-term". This, I know, sets us up as an even greater team for the decade (s) to come. I can't fathom how we've been so lucky as to create that.

With largest amount of founds and new leadership the SoundCloud will now need to look at reducing costs and monetizes the service. Now let us wait and hope for better outcome overall.

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