Fri. Jul 12th, 2024

SoundCloud is reportedly going up for sale.

Reports suggest that SoundCloud is gearing up for a sale that could potentially surpass £1 billion. Sky News has unveiled that the company’s proprietors, including Raine Group and Temasek Holdings from Singapore, are initiating discussions with investment banks about a forthcoming sale of the music streaming titan.

Currently, with over 40 million active artists and a vast library of 320 million songs since its inception 15 years ago, SoundCloud has become a prominent platform for artists to showcase their talents and connect with audiences. Since its 2007 debut, it has been pivotal in fostering emerging artists, enabling them to showcase their creations and engage listeners directly.

This potential sale emerges against the backdrop of past layoffs. SoundCloud previously announced significant workforce reductions in August 2022, affecting nearly a fifth of its employees globally. Economic shifts were cited as the primary reason, reminiscent of a similar sizable layoff in 2017 that saw almost 40% of its workforce being let go.

Addressing the challenges, SoundCloud conveyed in a 2022 statement their commitment to assisting transitioning employees while staying steadfast in their mission to innovate in the music industry. Notably, when Raine and Temasek stepped in with investments in 2017, SoundCloud was reportedly teetering on the edge of insolvency due to struggles in monetizing its operations amid a dynamically changing music industry landscape. However, recent progress and advancements have been observed under the leadership of CEO Eliah Seton.

Beyond internal shifts, SoundCloud faced external challenges as well. In September 2022, the platform gained attention as Russia restricted access to SoundCloud. The nation alleged that misleading content related to a military operation in Ukraine was disseminated on the platform.

While SoundCloud has been a launchpad for musicians across genres, it has significantly influenced the rap scene. Particularly impactful in the late 2010s, SoundCloud contributed to the rise of artists such as Trippie Redd, 6 Dogs, xxxtentacion, Juice WRLD, and Lil Yachty, among others, setting the stage for their rapid ascents in the music industry.

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