Could a possible $160 million SoundCloud investment save the company?
The SoundCloud investment funds amount to more than 50% of the company’s equity.
Music Business Worldwide has reported that merchant bank, The Raine Group, and Singapore state investment company Temasek Holdings seek to acquire stakes in SoundCloud.
Not just minor stakes either. It’s understood that together, their stakes amount to more than 50% of SoundCloud’s equity.
If the deal goes through, it could mean that these 2 finance houses will have control over the music streaming platform.
It is understood that with both investments, SoundCloud will be values at $300 million.
You can then deduce that their combined investments amount to around $150 million-$160 million.
This is a far cry from co-founders Alexander Ljung and Eric Wahlfors’ 2014 bid to sell SoundCloud to Twitter for $1 billion.
Though it didn’t go through, Twitter did make 1 $70 million investment last year which boosted SoundCoud valuation to $700 million.
Tug of words
Towards the end of last year sale talks with Spotify were in an ‘advanced stage’ before they walked away.
Earlier this year it is reported that Google was investigating a buyout closer to $500 million for SoundCloud, which Deezer reportedly was also considering in June.
It seems as though everyone is interested but they get spooked in the last minute, which is understandable considering the volatility of SoundCloud.
These deals with the investment companies have yet to go through, but will it be a good thing if SoundCloud’s fate lies in the hands of investment houses?
One thing is for certain, and that is that SoundCloud needs a serious change to its platform if it is to survive.
Being on the brink of eternal resuscitation is no way to go about business.
For the streaming service that champions independent artists, we wish them longevity and strength.
May this SoundCloud investment actually revive this streaming gentle giant.