Save your mixtapes, because SoundCloud might be for sale as reported by Sky News stating that the streaming service is allegedly preparing to go public this year.
Ten years after its founding, the streaming platform saw a majority takeover by Singapore government investment funds Raine Group and Temasek Holdings for a combined $170 million.
For a possible company auction, investment banks are allegedly being interviewed by the Singaporean companies according to Sky News adding that SoundCloud “could fetch more than $1 billion”.
Sources in Billboard have also hinted that the sale is imminent.
At least since the second half of 2022, SoundCloud has reportedly been considering a sale that would “increase the valuation of the company,” according to Billboard.
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The newspaper also revealed that Drew Wilson, the company’s COO and CFO, intended to resign from his position after three years.
If SoundCloud’s reported sale plans are starting to feel a bit familiar, it is because it’s not the first time the business has been in danger – possibly a sign of a wider decline in independent music streaming services.
About half of Bandcamp’s staff was laid off and the company was sold to its third owner in 18 months in September 2023.
SoundCloud has been associated with both underground and up-and-coming artistes. The platform features 375 million tracks from more than 40 million artistes, according to the company.
In July 2017, SoundCloud laid off forty percent of its employees, but according to several reports at the time, it only had enough funding to last another seven weeks after the exodus.
In August of that year, Raine Group and Temasek reportedly gave the streamer a Hail Mary in the form of a $170 million cash infusion. It is said that the investment kept SoundCloud from going bankrupt.
It is however unclear if recently appointed CEO Eliah Seton will continue in that role.