SoundCloud reportedly set for $1B sale later this year
Written by WOM writer on January 10, 2024
According to reports, shareholders Raine Group and Temasek Holdings have begun talks with investment banks for a potential auction.
It’s been revealed that SoundCloud is expected to be auctioned off later this year with a price tag of over $1 billion, according to reports.
Sky News recently reported that major shareholders Raine Group and Temasek Holdings have begun talks with investment banks for a potential auction, although the sale process isn’t expected to start for several months.
Raine and Temasek acquired SoundCloud stakes in 2017, valuing the streaming platform at $300 million after a $170 million majority-takeover deal. Recent insights from Music Business Worldwide suggest SoundCloud is on track for its first profitable EBITDA year by 2023-end, projecting revenues around EUR €288 million (USD $310 million).
Eliah Seton, SoundCloud’s CEO since March 2023, implemented strategic changes, including a reduction of 8% in the global workforce to ensure profitability. At the time, Seton said: “This is a challenging but essential decision to ensure the health of our business and get SoundCloud to profitability this year.
“In doing so, we are securing the company’s future for the millions of artists who rely on us for their living and their self-expression, and the millions of fans who come to SoundCloud for the joy of music.”
Since its inception in 2007, SoundCloud has served as an online platform empowering artists, hosting a vast community of over 40 million musicians who have shared around 320 million tracks.
The platform has made a big impact on music, even resulting in its own sub-genre of hip-hop called, ‘Soundcloud rap’, epitomised by artists like Lil Uzi Vert, XXXTentacion, Lil Pump, and Smokepurpp. SoundCloud rap’s impact lies in its disruption of music distribution, empowering emerging artists to cultivate a global following independently.
Specific details about the timeline for initiating the sale have not been disclosed. SoundCloud has chosen not to comment on these recent developments.
Source: Oliver Payne – musictech.com
