Published
Fri, Aug 11, 2017, 17:34
- Former Vimeo CEO Kerry Trainor will replace founder Alex Ljung as chief executive.
SoundCloud has accepted a $170 million cash infusion that will allow it to continue operating independently.
As Billboard reports, the funding came from two sources—a merchant bank called the Raine Group, and a Singaporean investment company called Temasek. The emergency cash will allow the company to keep operating and remain independent.
The news also comes with a leadership change. Current CEO and SoundCloud cofounder Alex Ljung will be replaced by former Vimeo chief executive Kerry Trainor, while another ex-Vimeo employee, Michael Weissman, was appointed the COO of SoundCloud.
The move comes amid ongoing concern about SoundCloud's ability to stay afloat, after massive layoffs and reports that the Berlin company was running out of money.
"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 Fred Davis of the Raine Group. "It's crystal clear to us that what SoundCloud has that is truly unique to its service is a unique set of rights and content that are available to listeners."
"People are very passionate about seeing it succeed," Ljung told Billboard. "All of this together—the capital, the capital partners, with Kerry and Mike joining our team—it puts our company in a really great position to stay strong and remain independent. We see a strong, independent future for the company."