Tech

SoundCloud may face liquidation today, unless investors accept 'do-or-die' proposal

SoundCloud may face liquidation today, unless investors accept 'do-or-die' proposal

Soundcloud has just secured a much-needed $169.5 million in Series F funding, led by The Raine Group and Temasek - allowing the popular music streaming service to avoid going under.

They'll be managing a new cash injection courtesy of investors The Raine Group and Temasek.

SoundCloud's current pre-money valuation is $150 million a sharp decline from its previous valuation of $700 million, and it is now asking for $170 million to keep the website alive.

SoundCloud's new CEO will be former Vimeo CEO Kerry Trainor, who stepped down in August past year. Instead, he confirmed today, Kerry Trainor will be assuming the chief executive position, supported by Mike Weissman who will now be SoundCloud's COO. In July, SoundCloud cut 40% of its staff, triggering rumours it was running out of cash and would shortly shut down. Chance and Young Thug recently shared their new song "Big B's" exclusively on SoundCloud after news broke of its turmoil in an effort to shift positive attention to the platform.

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Now, founder Ljung will step away from his role as CEO to focus on his role a chairman of the company. And that might just be the beginning of a significant change to SoundCloud leadership.

If the deal is rejected, however, the fate of the streaming service seems pretty clear: "financing of this size will enable to company to pay off its remaining debt, while ensuring a strong, independent future..." I can't fathom how we've been so lucky as to create that.

"As a huge fan of the SOUNDCLOUD platform since its founding, I deeply admire what ALEX and ERIC have built", TRAINOR said. The first 10 years are done, and now we're onto decade II.

Soundcloud declined to share the valuation or amount of new funding round.