SoundCloud Won't "Continue" Unless Investors Rescue It Now, Says CE0 Lung

SoundCloud Sound Cloud news SoundCloud Alexander Ljung

Now, the acquisition of a major stake in SoundCloud by Raine Bank (a NY company who have previously invested in the likes of Vice Media) and investment group Temasek has been confirmed, with the total investment reaching $169.5 million.

If the deal is rejected, however, the fate of the streaming service seems pretty clear: "financing of this size will enable to company to pay off its remaining debt, while ensuring a strong, independent future..." If it can't find funding or a buyer, SoundCloud could vaporize, destroying its massive archive of user-uploaded music, podcasts and other sounds.

SoundCloud will soon collapse if investors don't vote for a rescue funding round tomorrow. Ljung will stay on to "fully focus on the role of the chairman and the long-term".

SoundCloud's new CEO, former Vimeo chief Kerry Trainor.

"Now in its 10th year, I'm proud to say SOUNDCLOUD stands as an indispensable part of global music culture", LJUNG said.

In July, SoundCloud laid off 40 percent of its workforce and closed down its London and San Francisco offices.

"I'm happy to announce that together with investors The Raine Group and Temasek we've just wrapped up the largest financing round in the history of SoundCloud", said Ljung in a blog post. "For 10 years, SOUNDCLOUD has been the birthplace of genre-breaking musical movements in Electronica and Hip-Hop".

That arrangement - which seemingly cuts down SoundCloud's current valuation fourfold - needs the approval of existing shareholders, hence the memo. Documents obtained by Axios noted that Ljung suggested that if the deal fell through, "the company would not be able 'to continue as a going concern'".



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