Online music service SoundCloud saved by $170 million investment

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SoundCloud Accepts $170 Million Rescue, Taps New CEO to Replace Alex Ljung: Exclusive Interview

In a press release SoundCloud revealed the new deal with global merchant bank The Raine Group and Singapore investment firm Temasek, worth just shy of $215 Million AUD.

With this investment comes a new CEO, former Vimeo head Kerry Trainor, he replaces co-founder Alexander Ljung, who steps into a new role, as chairman of the company.

The struggling audio-hosting startup SoundCloud has secured a financial lifeline, with two investors putting up nearly $170 million to help the company stay afloat, according to Billboard. Ljung will serve as chairman of SoundCloud's board, and Wahlforss as chief product officer. "As I said, SoundCloud is here to stay".

As part of the investments, SoundCloud is adding talent from two former Vimeo executives.

With largest amount of founds and new leadership the SoundCloud will now need to look at reducing costs and monetizes the service.

Trainor plans to emphasize developing tools for musicians, DJs and other creators to use on SoundCloud, as he did with video creators on Vimeo by charging subscribers to use the video-sharing, marketing and analytics tools.

SoundCloud's future has appeared uncertain in recent months, with acquisition talks from both Spotify and Twitter falling apart, platform issues causing core users to flee, and a surprise cut of 40 percent of its workforce in July. As I said, SoundCloud is here to stay.

Nevertheless, the investments from the Raine Group and Temasek mean SoundCloud will stay independent. But he said the drumbeat of articles, speculating about the "big gaping hole" that would be left in the music world should the service disappear, shows "people are very passionate about seeing it succeed".

Over the past 12 months, SoundCloud said it has seen double-digit gains in creator subscriptions, uploads, listening time and listener subscriptions.

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