Soundcloud Finds Investors in Effort to Help Save the Platform
For producers and fans alike, Soundcloud has had held a special place in their heart when it comes to the music listening experience. There was a time when careers were made and communities were formed solely due to Soundcloud and the intuitive platform that it offered.
Despite the millions of members and countless downloads on the site, the company recently faced financial issues and is running the risk of becoming bankrupt. The news of the situation sent shockwaves throughout the music community. While the future of the company looked bleak, their fortunates may be changing due to a recent agreement to bring on new investors.
According to sources connected to Music Business Worldwide, two different companies have invested in the platform and plan on becoming 50% shareholders in the company moving forward. Those companies are The Raine Group (merchant bank) and an investment company named Temasek holdings. According to the same sources, Both of new investing companies value Soundcloud around $300m, so their combined investment will be around $150m. In comparison, Soundcloud tried to sell the company to Twitter for $1b back in 2014.
If this deal with The Raine Group and Temasek holdings holds up, it will be fascinating to see what their influence on the company will be. The convention wisdom is that the new investors will likely modify the platform and turn around to sell their shares to the next potential buyer. While the vast majority of the fanbase doesn’t have the financial backing to invest in the company, perhaps the Soundcloud community could direct their concerns, questions and ideas to change the platform directly to these new investors.
At the end of the day, the platform will only succeed if fans keep using the platform and are able to use it with little to no issues. Maybe this an opportunities as fans to petition and let the company know of the things that have to be changed in order to make the platform better. With new investors coming in, this could be a great time to let your voice be heard and help make Soundcloud the great platform that we all fell in love with when we first used it.