It appears with the new funds that became available last moment extended the life of the struggling audio service.
It has been reported that investors the Raine Group and Singapore – headquartered investment company Temasek added the new funds. But the SoundCloud did not reveal the amount of the investment. But amount was reported on Billboard at $169.5 million.
From drowning to live set
With this investment comes a new CEO, former Vimeo head Kerry Trainor, he replaces co-founder Alexander Ljung, who steps into a new role, as chairman of the company. The music streaming company is apparently sticking around for a while longer.
With largest amount of founds and new leadership the SoundCloud will now need to look at reducing costs and monetizes the service. On July 14, 2017 it was reported the SoundCloud is in financial trouble after the firm lay off 40% of its staff company and said it has enough cash until the end of September. At that time Co-founder Alex Ljung said: “ we continue to be confident the changes made last week put us on our path to profitability,” and then fired 173 staff and said it was closing its London and San Francisco offices to focus on Berlin and New York. However, it is failed to pick up the same volume of paying subscriber as Spotify and did not have the financial stability of Apple either.
SoundCloud was launched in 2008 and has never said how many paying subscribers it has, but launched a budget subscription package for hoping that will have more listeners to convert from its free service, which that also did not do well. Now let us wait and hope for better outcome overall.