Published: Fri, August 11, 2017
Electronics | By Jesus Weaver

SoundCloud Saved By Cash Infusion; Kerry Trainor Becomes CEO

SoundCloud Saved By Cash Infusion; Kerry Trainor Becomes CEO

The new investment, the company says, "will ensure a strong, independent future for SoundCloud, funding deeper development and marketing of its core tools used by millions of audio creators-musicians, DJs, producers, labels, managers and podcasters". Multiple reports put the needed investment at $169.5 million based on a current pre-cash valuation of just $150 million.

SOUNDCLOUD co-founder/CEO ALEXANDER LJUNG stays on as Chairman Of The Board, while co-founder ERIC WAHLFORSS remains Chief Product Officer.

Ljung wants the older SoundCloud investors to vote "yes", but ReCode reports that if they do, he will be fired before Vimeo CEO Kerry Trainor takes his place. The new COO is another Vimeo alumnus, Mike Weissman, who held the same position at the video company but quit to join SoundCloud.

The Berlin-based company was founded almost a decade ago, and has been a popular outlet for emerging artists to share music. If SoundCloud is sold or liquidated, Raine Group and Temasek would be the first investors allowed to recover their funds, along with other investors involved in what's called a "Series F". It was reported earlier this week that huge stakes of the company were set to be sold, however, meaning that SoundCloud may be able to keep operating.

SoundCloud lavishly spent money on offices around the world while its CEO galavanted at music festivals like a rock star. Moving forward it's unclear what plans SoundCloud has to better monetize its service. "For 10 years, SOUNDCLOUD has been the birthplace of genre-breaking musical movements in Electronica and Hip-Hop".

Ljung has warned in the past that without the rescue package, the company won't have enough money to survive, according to Digital Music News. Today it's a platform essential to the shaping of songs, artists, genres and global culture.

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