SoundCloud, the renowned music streaming service, is stirring up the tech and music world with rumours of its sale.
SoundCloud sale won’t be finalised for several months
Sky News and other sources have reported that the company could be on the verge of being sold for a whopping $1 billion.
This news follows a tumultuous journey for the platform, which was saved from financial ruin back in 2017 by The Raine Group and Temasek Holdings.
The once-struggling company has demonstrated a remarkable turnaround. After enduring financial hardships, including layoffs of 40% of its staff in 2017, SoundCloud has emerged as a thriving entity under the leadership of former Vimeo CEO Kerry Trainor and later, Mike Weissman.
Their strategies, including the introduction of hardware integrations and a fan-powered royalty model, have set SoundCloud on the path to its first profitable year in 2023.
Despite this success, SoundCloud faced ongoing challenges, laying off 20% of its staff in 2022 and an additional 8% in 2023.
These developments highlight the broader difficulties faced by the music streaming industry, with major players like Spotify also announcing significant layoffs.
Details of the potential buyers or the timeline for the sale are still under wraps.
However, insiders suggest that the sale won’t be finalised for several months. SoundCloud has declined to comment on these reports, adding to the speculation and anticipation within the industry.
How SoundCloud became scouting grounds for record labels
SoundCloud’s role in the music industry has been significant since its inception in 2007.
The platform provided an invaluable space for over 40 million artists, contributing to the release of 320 million tracks.
Some of the famous and impactful artists who were discovered or significantly boosted their careers through SoundCloud include:
- Post Malone: Rose to fame with his song White Iverson which gained millions of plays on SoundCloud.
- XXXTentacion: Gained a massive following on SoundCloud with his unique blend of rap and emo music.
- Lil Uzi Vert: Used SoundCloud as a platform to release his early work, contributing to his rise in the hip-hop scene.
- Billie Eilish: While not discovered exclusively on SoundCloud, she gained early attention there with her song Ocean Eyes.
- Chance the Rapper: Released his early mixtapes on SoundCloud, helping him gain a loyal fanbase and critical acclaim.
- Lil Peep: Became an underground sensation on SoundCloud with his blend of hip-hop and emo music.
- Lil Yachty: Rose to fame after his song One Night went viral on SoundCloud.
- Juice WRLD: Gained recognition on SoundCloud with his track Lucid Dreams, which later became a massive hit.
- Kehlani: Used SoundCloud to share her music in the early stages of her career, leading to wider recognition and success.
- Russ: Gained a following by consistently releasing songs on SoundCloud, leading to mainstream success.