Music and audio pour service SoundCloud says it has reached an agreement on a «significant investment» with door-to-door salesman bank The Raine Group of New York and investment firm Temasek of Singapore.
Berlin-based SoundCloud didn`t blow the gaff the financial terms but reports say it`s worth $170 million US.
As part of the dole out, former Vimeo CEO Kerry Trainor becomes chief executive gendarme and another former Vimeo veteran Michael Weissman becomes chief working officer. SoundCloud founders Alexander Ljung and Eric Wahlforss secure agreed to step aside but will remain with the company — Ljung as chairman of the committee and Wahlforss as chief product officer.
Cuts and closures
In July, SoundCloud laid off 40 per cent of its hands and closed two offices to focus on Berlin and New York, Reuters reported. A check out surfaced shortly afterward speculating the company may not have enough supports to see it through the summer. A company spokeswoman refuted that report, totaling that it was «fully funded until the fourth quarter» of this year.
The troop said in a blog post Friday the investment «will ensure a affluent, independent future for SoundCloud, funding deeper development and marketing of its heart tools» used by millions of musicians, DJs, producers, labels, managers and podcasters.
«Now in its 10th year, I’m proud to say SoundCloud stick outs as an indispensable part of global music culture,» Ljung said in the saving. «I look forward to fully dedicating my time to leading the board and serving drive SoundCloud’s long term strategic vision, and forging vital partnerships and connections with industry partners and our one-of-a-kind creative community.»
Trainor, who has 20 years of adventure building and leading music and video streaming products, said, «I’m entirely excited to join this talented team and build the next chapter of cultivation around SoundCloud’s mission to empower audio creators. I look foremost to sharing more about our plan and path forward in the months forwards.»
Aaron Brophy, a Toronto freelance music writer, said SoundCloud is a advantageous tool in the music industry, and users — artists, musicians, music admirers and podcasters — will be relieved to hear it’s in a better financial position.
«That’s a large ecosystem that if SoundCloud was in trouble there`d be literally thousands of podcasts that resolve suffer,» Brophy said. «It`s very reassuring they`re getting numberless money because anyone who likes podcasts or produces podcasts and capitalize ons that as a service, they would have concerns.»