Sky News reports that Raine Group, in collaboration with Temasek Holdings, Singapore’s state investment fund, has initiated the process of selecting investment banks for a potential sale of the company. This strategic move marks a significant step following the appointment of Eliah Seton as the Chief Executive Officer on March 9, 2023.
Founded in August 2007, SoundCloud, Inc., headquartered in Berlin, Germany, serves as a social platform for sound creation and sharing.Ā The platform, co-founded by Alexander Ljung and Eric Quidenus-Wahlforss, has evolved into one of the world’s leading music streaming services.
Boasting a library with twice as many songs as Spotify, it has become a hub for a vast number of creators
SoundCloud stands out as a global music company, fostering direct connections between creators, artists, and fans worldwide, all shaping the future of music. Boasting a library with twice as many songs as Spotify, it has become a hub for a vast number of creators, solidifying its position as one of the world’s foremost music streaming services.
The platform prioritizes artists, offering them cutting-edge tools, services, and resources to enhance and expand their careers. With an impressive catalogue of over 320 million tracks from 40 million artists, SoundCloud is at the forefront of shaping the future of the music industry.
SoundCloud has introduced a pioneering Fan-Powered Royalties (FPR) model, a user-centric payout system that represents a significant innovation in the music streaming industry. Under this model, a portion of each subscriber’s or advertiser’s revenue is distributed based on individual listening patterns. This approach enables rights holders and artists to generate earnings directly from their fans’ listening habits. Additionally, it provides valuable insights into the fan base, facilitating a more direct connection between artists and their audience on the SoundCloud platform.
In 2017, amidst fierce competition from streaming giants vying for subscribers and payments, SoundCloud faced near bankruptcy. However, in January of that year, the company received a lifeline with a $169 million infusion from The Raine Group and Temasek – its largest funding round since inception.
In 2017 SoundCloud faced near bankruptcy. But in the same year, the company received a $169 million infusion from The Raine Group and Temasek, Singapore-based investment firm
On August 11, 2017, SoundCloud confirmed a significant investment deal with The Raine Group, a global merchant bank, and Temasek, a Singapore-based investment firm. This funding marked a pivotal turn for the company, bringing in seasoned digital media experts Kerry Trainor and Michael Weissman as CEO and COO, respectively. This investment was heralded as a move to secure SoundCloud’s independence and future.
Despite these investments, SoundCloud continued to navigate challenging waters in the streaming music sector. Even as investor interest in streaming music services surged, the overall economic climate remained tough. Nevertheless, users demonstrated a growing acceptance of streaming music services, with many willing to pay for these offerings.
In 2022, SoundCloud launched ‘SoundCloud for Artists’, introducing several updates including the new Fans tool for artists, direct messaging on mobile, an enhanced Comments tool, a global licensing agreement with Merlin, and an expansion of Member Benefits.
SoundCloud is encountering a novel milestone: achieving annual profitability for the first time.
A report published on December 13th, 2023 by Music Business Worldwide indicates that SoundCloud is poised to announce a modest but positive EBITDA for the fiscal year 2023.
Internal projections indicate that the company expects to generate revenues of approximately EUR ā¬288 million (USD $310 million) in 2023. This represents a year-over-year increase of 7.5%, or 9% when adjusted for constant currency (USD).
To date, SoundCloud has raised a total of $542.8 million over 10 funding rounds. The most recent, a Corporate Round secured on February 11, 2020, underscores the company’s robust backing by 18 investors, including notable names like Sirius XM and Temasek Holdings.
0 Comments