Following ongoing rumours that surfacing recently suggesting that SoundCloud is on its way out (which they vehemently deny) 2 firms may be buying a major share.
SoundCloud had to let go a decent chunk of its staff last month, prompting rumours to circle round the block of their imminent bankruptcy. SoundCloud have said that they aren’t going anywhere, but recent news hasn’t exactly put to bed their alleged issues – though there may be a solution.
Reportedly, two separate private equity firms are looking to take a large stake each that would result in a majority acquisition between the two. Apparently SoundCloud’s co-founder and CEO Alex Ljung has been resistant to sell so far as he doesn’t want to sell to a majority stakeholder. With two investors there is no single majority and therefore retaining more control in Ljung’s hands rather than having to answer to one big entity taking control of the service.
The potential duel investment hasn’t been confirmed yet but has been told to Bloomberg via “people familiar with the matter”. Whilst anonymity doesn’t create the most reliable of sources it seems legit and would make a lot of sense for SoundCloud if they are even partially in the trouble that the industry says they are.
If it is true we should hear about details and terms to the partial acquisition soon. Stay tuned for more SoundCloud news.