Published: Fri, August 11, 2017
Hi-Tech | By Grace Becker

SoundCloud stays afloat with emergency investment, as CEO steps aside

SoundCloud stays afloat with emergency investment, as CEO steps aside

Following that decision, SoundCloud CEO Alex Ljung has moved to directly reassured fans and investors on the company's blog.

Following up earlier reports of an imminent stockholder vote on a last-minute investment deal to keep SOUNDCLOUD afloat, the company has announced an agreement to secure significant investment from global merchant bank THE RAINE GROUP and investment company TEMASEK, VARIETY reports.

"Financing of this size will enable to Company to pay off its remaining debt, while ensuring a strong, independent future", say documents in relation to the deal. Ljung will be replaced as CEO by former Vimeo chief Kerry Trainor, but Ljung will retain the chairman role.

For the past month, the future of every internet rapper's favorite place to upload his music, Soundcloud, has seemed completely up in the air.

The Daily Caller News Foundation reached out to SoundCloud, but it did not respond to the inquiry by time of publication.

SoundCloud did not disclose the funding amount it received, but it is believed to around $169.5 million, according to an internal memo obtained by Axios on Thursday.

Morocco officially launch bid for 2026 World Cup
In April, the United States, Canada and Mexico had already announced a joint North American bid to host the tournament. The 2026 tournament will be the first with an expanded 48-team tournament, up from the current 32 qualifiers.

SoundCloud's prospects looked bleak this year.

"If I could show to you the number of people who have been calling us, expressing fear about it going away, you would be shocked", said Davis, who will join SoundCloud's board.

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.

SoundCloud lavishly spent money on offices around the world while its CEO galavanted at music festivals like a rock star.

SoundCloud has been an essential music platform for both independent and major artists.

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