After being saved from bankruptcy in 2017 by Raine Group and Temasek Holdings, SoundCloud is reportedly up for sale for over $1 billion, according to Sky News. The company has apparently begun speaking with investment banks, and possible bidders include the Raine Group and Singaporean state investment fund Temasek Holdings. SoundCloud laid off around 20% of its workforce in 2022 and another 8% of staff last May, which affected roughly 40 workers. It has since declined to comment on the possible sale.
SoundCloud CEO Eliah Seton has stated that layoffs were essential to ensure the company’s financial health and profitability, thus ensuring the future of the millions of fans that use SoundCloud for their primary source of music. The sale of SoundCloud is not expected to start for several months, according to an insider close to the situation. The music streaming service purchased AI tech startup Musiio in a bid to boost its portfolio, as reported by Mixmag.
It is not yet clear who will purchase SoundCloud or when the company will be up for auction. But SoundCloud has become a much-loved platform for many musicians and fans, with over 76 million registered users globally. The company has faced fierce competition from other streaming services like Spotify and Apple Music, which perhaps necessitated this move.
The sale of a platform that has been so instrumental in introducing independent artists and their music to the world is sure to cause some anxiety, especially among the 40 workers who lost their jobs last year. But this move might be just what SoundCloud needs to stay competitive and even thrive under new ownership’s stewardship
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