In light of a troublesome few months for SoundCloud their investors reportedly want to get rid of CEO Alex Ljung, the original founder.
SoundCloud have had a troublesome time lately with reports circulating that they are quickly running out of money, not helped by their recent layoffs of around half their staff. Now to secure further investment, SoundCloud’s investors are looking to replace SoundCloud’s current CEO Alex Ljung.
In a proposed deal for funding the former CEO for Vimeo, Kerry Trainor, would take the place as CEO of SoundCloud. Alex Ljung would stay on as chair of the company board. If Trainor enters that position he would bring on a new COO as well, according to circulated documents detailing the deal.
SoundCloud are hoping to earn $170 million in investments mostly from Raine Group and Temasek. In recent years SoundCloud have toyed with the idea of a sale, thinking they could sell themselves to Twitter for $1 billion. They also valued themselves at $700 million prior to that.
It seems those estimates were a way off as SoundCloud are now looking for investment and investors predict a sale would catch around $250 million. New funding would be used to help pay off it’s debt which includes a massive $70 million credit line the company took in March.
Trainor left his position at Vimeo last year and it’s not certain how much of a positive effect he could have for SoundCloud, but investors clearly feel they’re going nowhere with Alex Ljung.