Business News: SoundCloud Will Not Be Shutting Down


August 11th, 2017 by
SoundCloud Will Not Be Shutting Down

SoundCloud Accepts $170 Million Rescue, Taps New CEO to Replace Alex Ljung

SoundCloud today announced that it has closed the investor round necessary to keep it going for the foreseeable future. As part of the agreement, Alex Ljung will step aside and former Vimeo leader Kerry Trainor will become SoundCloud’s new CEO, with Mike Weissman as COO. Ljung will stay on to “fully focus on the role of the chairman and the long-term.” Billboard reports the exact amount of the investment is $169.5 million, which, says Ljung, makes this infusion “the largest financing round in the history of SoundCloud.

“All of this together — the capital, the capital partners — with Kerry and Mike joining our team — it puts our company in a really great position to stay strong and remain independent,” Ljung tells Billboard. “We see a strong, independent future for the company.”

Trainor tells Billboard he will endeavor to pay greater attention to the creators, which includes developing a “robust creative toolkit” for SoundCloud’s Unlimited service in hopes of attracting even more musicians to pay for its upper-tier subscription. “Millions of creators choose these tools to share their work with the world,” says Trainor, “[and] that will remain at the focus and center of the company.”

Yesterday, Axios revealed details of a SoundCloud shareholder memo that said the future of the company hinged on a pending reorganization proposal. Though the exact details of that proposal have not been revealed, it appears it was accepted. As part of the new investment, per the memo, SoundCloud’s new and existing investors will receive Series F stock, a special class of common stock that has seniority and preference, while existing Series E investors will have their liquidity preference cut by over 40 percent.

SOURCE: THE VERGE

Catiana

About Catiana Saillant

As a child, I’ve always loved music. From different genres such as Hip-Hop, R&B and Pop. Music allows you to be creative and express yourself the way that you please to. I’ve sought music to be a place where you can be YOU. You can dance, cry, laugh and do all kinds of crazy things to music. That is what makes me so passionate about what I do! My ultimate goal is to build a mainstream media platform that represents and supports culture such as paintings, music, film and provide empowering media coverage to my viewers.

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