- SoundCloud up for sale
- Anticipates over $1 billion
- Improved under CEO Seton
Later this year, SoundCloud, backed by Raine Group and Temasek Holdings, will be put up for sale as its owners anticipate a substantial profit.
The proprietors of SoundCloud, a prominent global music streaming platform, are making preparations for a potential transfer with a valuation exceeding $1 billion.
The Singaporean state investment fund Temasek Holdings and Raine Group have initiated interviews with investment banks regarding the company’s potential sale at auction.
Established in 2007, SoundCloud furnishes artists with an online platform to host and distribute their work, thereby facilitating the development of their professions.
Over forty-million artists have contributed to the platform’s 320 million track collection.
A sale of SoundCloud would emphasize the magnitude of the company’s reversal in recent years; since assuming the CEO role last year, Eliah Seton has overseen a rapid acceleration of development.
In 2017, when Raine and Temasek invested, the company was reportedly on the verge of insolvency.
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It encountered challenges in generating revenue from its business model during swift economic changes in the worldwide music sector.
While the major record labels, such as Universal and Warner Music, continue to be significant participants in the industry, several independents and start-ups that utilize novel methods to link artists and consumers have also managed to generate revenue.
SoundCloud reduced its workforce by approximately 10% to achieve annual profitability for the first time in the previous year.
An informant claims that selling SoundCloud is unlikely to commence for several months.
