The owners of SoundCloud, one of the world’s largest music streaming services, are preparing for a sale that could fetch in excess of $1bn.
Founded in 2007, SoundCloud provides artists with the tools to build their careers by providing them with an online home to publish their work.
According to Sky News, the owners of the streaming platform — US merchant bank Raine Group and Singaporean state investment fund Temasek Holdings — are currently in talks with investment banks about a potential auction of the Berlin-based company.
In total, more than 40 million artists have released 320 million tracks on the platform. A sale of SoundCloud would underline the scale of its turnaround in recent years, with its progress having accelerated under Eliah Seton, who took over as chief executive last year.
In 2017, Raine Group and Temasek Holdings saved SoundCloud’s from going under with an investment of $170 million. The company launched their new fan-powered royalties system in March 2021 in a bit to “revolutionise” the way in which artist royalties are paid.
However, in August 2022, SoundCloud announced their move to lay off 20% of its workforce, further adding to this by letting go 8% of its staff in May 2023 as part of a bid to make the streaming platform profitable. The move affected approximately 40 of its staff.
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