Published: Fri, August 11, 2017
Hi-Tech | By Ellis Neal

Investors To Decide SoundCloud's Fate In 'Do Or Die' Meeting

Investors To Decide SoundCloud's Fate In 'Do Or Die' Meeting

Bloomberg then linked NY bank The Raine Group and Singapore's state investment fund Temasek to the company, reporting that both meant to pump money into SoundCloud. CEO and founder Alex Ljung was replaced by former Vimeo CEO Kerry Trainor.

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. SoundCloud stated that the company is "fully funded into Q4".

Ljung says if the SoundCloud rescue package isn't approved, more of his employees will leave and the company won't have enough money to survive.

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. Trainor brings with him Michael Weissman, also from Vimeo, to serve as the company's chief operating offer.

In July, SoundCloud laid off 40 percent of its workforce and closed down its London and San Francisco offices. As part of the reorganisation, The Raine Group, Temasek and a number of returning backers will receive a special class of common stock that has seniority and preference over the company's other investors.

10 years ago SoundCloud was just an idea Eric and I bounced around. Moving forward it's unclear what plans SoundCloud has to better monetize its service.

If the funding isn't accepted, founder and chief executive Alexander Ljung has suggested the company would not be able 'to continue as a going concern'.

"Over the last few weeks, I've been moved by the outpouring of commentary around SoundCloud's unique & crucial role in driving what global culture is today (and what it will become tomorrow)", Ljung wrote.

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