SoundCloud to Go On Sale for $1BN Says Report
The news comes after the community-led streaming platform’s 8% staff reduction in 2023.
The news comes after the community-led streaming platform’s 8% staff reduction in 2023.
SoundCloud, which is known as one of the world’s leading music streaming services and a favorite for independent artists, is gearing up for a financial swan song, as per reports from Sky News. This is in accordance with reports that the company’s principal owners, Raine Group and Temasek Holdings, are reportedly in the midst of interviewing investment banks to initiate the sale process.
As part of a $170 million majority acquisition, Raine and Temasek purchased SoundCloud shares in August 2017. The streaming company was valued at approximately $300 million as a result of the purchase. It is now reported that the purported sale is worth over $1 billion.
Since the takeover in 2017, SoundCloud has laid off 20% of its workforce in 2022 and then 8% of its global staff in May 2023 in its quest for profitability. With over 320 million tracks and over 40 million artists, SoundCloud’s forte has been its free and open-source accessibility; however, following the acquisition from Raine and Temasek in 2017, the business was on the brink of collapse, and the company now has set its sights on being profitable for the first time since its inception in 2007.
With the potential price tag being over a billion dollars, it will be an interesting period for SoundCloud as they go deeper into the sales process.
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