Music Business Worldwide broke the news that a pair of investors have purchased a controlling stake in SoundCloud the service for an estimated $150 million based a $300 million valuation, bear in mind last July the company was milling over a $1 billion offer from Spotify. This means SoundCloud is safe, at least for now.
An unnamed, senior industry source cited by MBW close to the company stated, “SoundCloud plays a unique role in the industry and it’s a great shame that it’s [in this financial state]. It’s not like private equity will be looking at this deal as a way to contribute to the music industry; they’re unlikely to be thinking about how they can serve artists and songwriters. [This investment] is a shot of steroids in order to make some quick money – it’s not about the long-term health of the music business.” Read all about how artists in the electronic music space feel regarding the future of the platform and the long-term health of the music business in our story SoundCloud: A Love Story.