Advertisement

UPDATE 1-Cash-strapped SoundCloud gets new funds and top management

UPDATE 1-Cash-strapped SoundCloud gets new funds and top management
From Reuters - August 11, 2017

FRANKFURT (Reuters) - SoundCloud has received a "substantial" round of investment, the online music streaming service said on Friday, insulating it from potentially running out of cash later this year.

The company, which laid off 40 percent of its staff in July, said in a blog post that the financing was raised from media-focused investment bank Raine Group of New York and Singapore's sovereign wealth fund Temasek [TEM.UL].

It did not disclose the amount of the funding or its terms.

One source familiar with the investment said it amounted to around $170 million (144 million euros), as reported on Thursday by online news site Axios, which had obtained the deal's term sheet.

The company said that as part of the new investment, digital media veterans Kerry Trainor and Michael Weissman, respectively the former chief executive and chief operating officer of online video service Vimeo, would take the same roles at SoundCloud.

SoundCloud founder and former CEO Alexander Ljung has agreed to step aside to become chairman of the board, it said. Co-founder and Chief Technology Officer Eric Wahlross will remain at the company as chief product officer.

In July, SoundCloud fired 173 employees or 40 percent of the total and closed its London and San Francisco offices to focus on Berlin and New York. A spokeswoman for SoundCloud said last month it remained fully funded into the fourth quarter, while declining to comment on what lay beyond.

Advertisement

Continue reading at Reuters »