SoundCloud saved by a $170 million cash injection from a Singapore-based company
Just in the nick of time
After recent reports suggested SoundCloud’s last day was upon us, the CEO has announced his departure and the streaming service has acquired enough emergency funding to continue operating.
As reported by TechCruch, CEO Alex Ljung has stepped down and former Vimeo CEO Kerry Trainor will replace him. Ljung will still be part of the company however, remaining chairman of SoundCloud.
Other changes include appointing co-founder Mike Weissman to COO while CTO Eric Wahlforss becomes chief product officer. Leading the new round of funding are a boutique merchant bank called the Raine Group and a Singaporean investment company called Temasek, who now have liquidation preferences that override all previous investors.
Although SoundCloud is not disclosing the exact amount of the newly acquired emergency funding, yesterday it was reported that the company was raising $169.5 million at a $150 million pre-money valuation. A sharp reduction from last year’s $700 million evaluation when Soundcloud was going through its last round of funding.
Soundcloud is now operating with a total revenue at a $100 million annual run-rate, but is still yet to break even.
