Out of all music streaming services like Spotify, Apple Music and Pandora, SoundCloud actually has the largest listener base with 175 million. Now it's asking investors for $169.5 million at a pre-money enterprise valuation of just $150 million, according to Axios' reliable business editor Dan Primack. Ljung will be replaced as CEO by former Vimeo chief Kerry Trainor, but Ljung will retain the chairman role.
Despite its reputation as a haven for independent musicians to release non-mainstream music, SoundCloud was unable to capitalize on its content. If the transaction does not close and the platform can not obtain additional funding, SoundCloud faces very serious liquidity concerns.
Ljuing wrote, as he has before, that SoundCloud "isn't going anywhere" with the new funding round.
As part of the deal, SoundCloud co-founder and Chief Technology Officer Eric Wahlforss will now head its product team, and Mike Weissman will become Chief Operating Officer.
Scattered Storms On and Off Through the Day
These showers will be quite heavy, but majority will die away by evening time, with a chance of rain later tonight . Into the weekend, Saturday will start off mostly sunny but build cloud cover through the afternoon.
Raine Partner Fred Davis - who will join the board along with VP Joe Puthenveetil - calls SoundCloud "a unique and essential music platform for new and developing artists".
Soundcloud had been on the ropes before its cash infusion, laying off 40 percent of its employees - 173 workers in total - and shuttering offices in London and San Francisco last month. "For 10 years, SOUNDCLOUD has been the birthplace of genre-breaking musical movements in Electronica and Hip-Hop". Now, SoundCloudsays, that's not a worry, though there'll be some changes ahead.
SoundCloud has been an essential music platform for both independent and major artists. But what's even better is this: we're all just getting started.